U.S. Shale Gas Bound for Europe After Leaving Cheniere

April 21, 2016

Bloomberg

Within a decade of revolutionizing domestic natural gas markets, U.S. LNG produced from shale will for the first time enter Europe, a region dominated by Russian and Norwegian supplies.

Portugal will receive the tanker Creole Spirit, the sixth cargo from Cheniere Energy Inc.’s Sabine Pass facility, according to two people with direct knowledge of the matter. The first left the plant in Louisiana in February.

Europe will become the third continent for U.S. shale gas, which has already turned the country into the world’s biggest gas producer and will make it a net exporter this year, helping contribute to an 18 percent increase in global liquefied natural gas capacity through 2017, according to Bank of America Merrill Lynch. The flexible U.S. volumes, coming after five years of stagnation in global LNG capacity, have already been shipped to Brazil, Argentina and India.

“LNG coming out of the U.S. is probably the single most important thing that will transform the future LNG market,” Melissa Stark, energy managing director and global LNG lead at Accenture, said by e-mail. “It heralds the arrival of a global market.”

Read entire article at Bloomberg.

 

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