Japan’s mighty nuclear power plant fleet has been brought to a standstill by just 29 residents, adding millions of dollars to the country’s energy import bill.
Global LNG capacity is expected to grow by around 30mn t/yr this year. While the global demand for LNG is increasing the extent of this production is such that it will keep the pressure on prices for the next few years.
We look at how new liquefaction trains in Australia, Malaysia and the USA will contribute to 2016, LNG’s year of plenty.
Who will buy the first LNG cargo from the US’ 25mn t/yr Sabine Pass project? Trading desks across London are taking bets, we hear.
Imagine: Your long-term, oil-linked gas supply contract suddenly becomes totally out of the money and may bankrupt your company.
What do you do?
The US is about to start its first new LNG export facility for over four decades. And it’s pointing its tankers to Europe, Gazprom’s largest and most important gas market.
In Paris last week, Cheniere Energy chief executive Charif Souki said the 25mn t/yr Sabine Pass project could deliver LNG to Europe at $4.50/mn Btu. This is close to the breakeven cost for Gazprom delivering to Europe, according to Societe General European gas and LNG analyst Thierry Bros. He estimates Gazprom would need prices of $4.50-5/mn Btu, including transport and taxes. This means the US slightly edges out Russia on price to supply Europe. Continue reading