LNG Could Follow Crude Oil's Lead: Russell
In contrast to the carnage in crude oil markets, liquefied natural gas (LNG) prices in Asia have enjoyed relative stability for the past three months, but it's unlikely the calm will persist much longer. Spot Asian LNG prices <LNG-AS> ended last week at $5.60 per million British thermal units (mmBtu), about 28 percent below the recent peak of $7.80 reached on Nov. 22. In contrast, Brent crude oil has dropped 46 percent from its recent peak in early October to trade currently around $28.55 a barrel. The relative outperformance of spot LNG holds over the longer term as well, with the price of the super-chilled fuel having dropped 68 percent since its all-time high of $20.50 per mmBtu in February 2014.
Cheniere Says First LNG Export in January
LNG exports from Sabine Pass to start in January. Cheniere Energy expects to start receiving natural gas to convert into super-chilled liquid fuel at its first U.S. LNG export terminal before the end of the year, with shipments to start in January, its chief executive said on Monday. Cheniere's plant will mark the first exports of cheap and abundant U.S. shale gas as liquefied natural gas (LNG), adding to a huge boost in output out of Australia as well. The ample supplies, combined with slowing growth in China and falling demand in top importers Japan and South Korea, have cut prices and prompted a battle for market share. First natural gas supplies will arrive at its U.S.
BG Group Selects Rolls-Royce Trent 60 DLE
Rolls-Royce is proud to announce that BG Group has selected the Trent 60 DLE industrial gas turbine as the driver for the main refrigeration compressors in the proposed Lake Charles LNG Export project in Louisiana, USA. BG Group and Rolls-Royce have also agreed the terms of a Long Term Service Agreement covering the support and maintenance of the equipment for up to 25 years that will help deliver high levels of availability for this important LNG plant. Both the equipment and service contracts are expected to be activated in the first half of 2015, subject to the US LNG plant permitting process and final investment decisions by BG Group and Energy Transfer, the developers of the project.
U.S. LNG Cargo Shipped From Alaska to Japan
ConocoPhillips ships third LNG cargo from Alaska to Japan. ConocoPhillips (COP) has shipped a third cargo of liquefied natural gas to Japan from the only U.S. LNG plant permitted to sell domestically produced fuel to the Asian country, reports Bloomberg. ConocoPhillips’ license allows it to sell U.S.-produced gas to countries with which the nation has no free trade agreement. The Department of Energy awarded a similar authorization last year to Cheniere Energy Inc. (LNG), which plans a terminal in Sabine Pass, Louisiana. Source: Bloomberg
