As U.S. natural gas prices continue their downward march, producers are increasingly pressured to find alternative markets for their natural gas. One option available is to diversify their price exposure by signing agreements to provide feedgas to LNG export facilities. Chesapeake reached an agreement 11 months ago to supply up to 265 MMcf/d in feedgas to commodity trader Gunvor for export from LNG terminals. The agreement will last 15 years, and Chesapeake will receive a price that is indexed to the Japan Korea Marker (JKM), which is the benchmark price for U.S. LNG in East Asia.
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- Blog
When the Going Gets Tough, Part 2 - The Halting Progress of U.S. LNG Export Projects
There’s a tough race underway among U.S. LNG developers jockeying for position in the global LNG market. U.S. supply growth has spurred the development of more than two dozen LNG export projects, the bulk of them along the Texas/Louisiana Gulf Coast. But regulatory bottlenecks and deepening oversupply conditions in international markets are creating strong headwinds and slowing the momentum for some of these massive projects, making it harder and harder for them to reach the regulatory and commercial milestones they need to pass before they can progress to the construction phase. That said, several projects have eked out big wins in recent weeks, including Tellurian’s $7.5 billion memorandum of understanding with India’s Petronet LNG Ltd for its Driftwood LNG project, signed just this past weekend, and LNG Ltd.’s 2-MMtpa sales and purchase agreement for its Magnolia LNG, inked early last week. Today, we provide highlights of recent regulatory and commercial developments that are pacing the proposed export capacity additions.
- Blog
Courtesy of the Red, White and Blue: How the US Shale Gas Boom Benefits Asian LNG Importers
Using the US natural gas production boom to promote the idea of a sustainable “global gas glut”, Asian importers have successfully managed to chip away at the longstanding oil-indexed pricing mechanism for liquefied natural gas (LNG) overthe past two years. While oil-indexation in LNG contracts will certainly not disappear overnight, the shale revolution has provided gas importers with significant negotiating leverage and a new degree of pricing flexibility. Today we examine the trend toward more US centric LNG pricing.
- Blog
Hot Stuff - With Cheniere's Midscale Expansion, the Future of U.S. LNG Looks Hotter Than Ever
It’s shaping up to be an incredible year for U.S. LNG growth, with record levels of feedgas demand and exports along with progress on the regulatory front, as the Trump administration has cleared away hurdles that had previously stalled project development. Now, Cheniere Energy has announced a positive final investment decision (FID) on its Corpus Christi Midscale expansion. In today’s RBN blog, we take a closer look at the Midscale project and others that could move forward this year.
