• Wednesday, 16 May, 2012

US LNG bound for Europe

US LNG: set for Europe

related stories

By News Wires

 08 November 2010 11:52 GMT

The US is set to supply gas to Europe for the first time, with a tanker of liquefied natural gas expected to arrive in the UK from Louisiana later this month.



US gas prices have fallen more than 30% since the beginning of the year, pressured by a surge in North American gas production which has also reduced US LNG imports to minimal contracted volumes.

The US started re-exporting LNG to higher-paying markets in Asia and South America earlier this year, but the Maersk Meridian LNG tanker, expected to arrive on 18 November at UK's Isle of Grain terminal is the first to head to Europe - Russia's main export market.

"It's the first actual case of a direct Atlantic arbitrage that I've seen," one UK gas analyst told Reuters.

Although the Maersk Meridian can only carry 166,000 cubic metres of LNG, a 216,000 cubic metre tanker called Al Hamla is expected to load a re-export cargo at the same terminal soon, although its destination is unclear.

Nearly 20 billion cubic feet of gas has been re-exported from the US this year, excluding the gas aboard the UK-bound vessel.

In mid-October, two cargoes were shipped from the US Gulf by Excelerate Energy, one of which is heading to Kuwait, the other to Argentina.

Only the Sabine Pass and the Freeport LNG import terminals have re-export capacity in the US, although Sempra Energy's Cameron terminal, which, like Sabine Pass and Freeport, is in Louisiana, has applied for a licence.

The UK gas market is more seasonal than the US, with wholesale gas prices tending to rise more in winter because it has relatively little storage and is heavily dependent on gas for heating.

User

Become an Upstream member!

Membership includes a subscription to our weekly newspaper providing in-depth news from the energy industry, plus full-access to this site and its archives. Still not convinced? Try our free trial.

Already a member?

Login

Upstream share price index

Recruitment
See all available positions
Events
2
06.05.2012

06

May

06.05.2012 -  20th Middle East Petroleum & Gas Conference (MPGC 2012)

MPGC 2012 will be held from 6-8 May and is returning to Bahrain again, on the occasion of its 20th Anniversary. The conference will be held under the Patronage of His Excellency Dr. Abdul Hussain bin Ali Mirza, Minister of Energy-Chairman of National Oil & Gas Authority, Kingdom of Bahrain and with National Oil & Gas Authority (NOGA) & The Bahrain Petroleum Company (Bapco) as hosts.
The Conference Connection Inc
Read more »
07.05.2012

07

May

07.05.2012 -  20th Middle East Petroleum & Gas Conference (MPGC 2012)

MPGC 2012 will be held from 6-8 May and is returning to Bahrain again, on the occasion of its 20th Anniversary. The conference will be held under the Patronage of His Excellency Dr. Abdul Hussain bin Ali Mirza, Minister of Energy-Chairman of National Oil & Gas Authority, Kingdom of Bahrain and with National Oil & Gas Authority (NOGA) & The Bahrain Petroleum Company (Bapco) as hosts.
The Conference Connection Inc
Read more »
08.05.2012

08

May

08.05.2012 -  20th Middle East Petroleum & Gas Conference (MPGC 2012)

MPGC 2012 will be held from 6-8 May and is returning to Bahrain again, on the occasion of its 20th Anniversary. The conference will be held under the Patronage of His Excellency Dr. Abdul Hussain bin Ali Mirza, Minister of Energy-Chairman of National Oil & Gas Authority, Kingdom of Bahrain and with National Oil & Gas Authority (NOGA) & The Bahrain Petroleum Company (Bapco) as hosts.
The Conference Connection Inc
Read more »