Liquefied natural gas exports from the U.S. are looking more likely after the Freeport LNG...


Liquefied natural gas exports from the U.S. are looking more likely after the Freeport LNG terminal gained conditional approval, Goldman Sachs says, supporting its view that at least 6.8B cu. ft./day of liquefaction capacity will be built in the U.S. The market needs no more than 7.7B/day for the next decade, and Henry Hub prices need to stay at or below $5.10/MBtu to keep U.S. LNG competitive in Europe, Goldman says.

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Comments (6)
  • efdupuy
    , contributor
    Comments (3) | Send Message
     
    I do not understand how anyone would buy UNG today based on this news, because the plant will NOT be shipping gas until 2017.
    21 May 2013, 11:57 AM Reply Like
  • Lake Investor
    , contributor
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    I think there's still a greater chance that NG prices recover and LNG exports are not as compelling. I'd be careful investing too much capital in export terminals. Good chance US switches to more and more power generation and use of CNG in transportation thus making US demand go up.
    21 May 2013, 01:11 PM Reply Like
  • Thomas McCann
    , contributor
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    Your argument is confused - either LNG prices will rise or they won't. If they rise and make exporting less profitable, why would power companies continue to use the more expensive fuel (vs coal). If prices stay low, exporting will continue to be profitable and power companies will continue to switch.

     

    Careful readers of this response will note the sound logic but continued tension of the forces at work. The truth is that no one can say what will happen definatively. There are so many forces at work here: Asian demand (exaggerated by knee-jerk overreaction to Fukushima in Japan), EPA fanatical regulation trying to kill coal, the incredible glut of LNG from America's drilling boom, the huge tech and capital risks and long lead times in building out LNG infrastructure, the politicalization of everything in the US, and uncertain energy demand going forward. To think we know how this complicated story will end is the folly of hubris and arrogance. No one knows and invisible hand will play circumstances out as they arise. Anyone saying they know how this will play out 10 years from know is either selling something or working for either the Sierra Club, Dow Chemical, the Obama admin or T Boone Pickens.
    21 May 2013, 10:27 PM Reply Like
  • jackpot135
    , contributor
    Comments (22) | Send Message
     
    Well given the fact that there is very little NG drilling going on now, because we have no place to store it or use it and once LNG start's being exported 2015 by Cheniere and others come on line you will see more drilling. I venture to say the price will drop due to the amount we have here in the US and the demand oversea's. I own Cheniere (LNG) and with it's 5 / 20 year use it or lose it contracts with built in margins I say it is a more realistic view that LNG's price will continue to rise. Oh, by the way George Soros recently, May 16, bought a 5.6 million dollar position in Cheniere. Big money from the big Hedge Funds are moving in on LNG.
    21 May 2013, 03:41 PM Reply Like
  • joverage
    , contributor
    Comments (57) | Send Message
     
    One word. One company. Japan. Cheniere.
    21 May 2013, 04:14 PM Reply Like
  • nemonemo
    , contributor
    Comments (337) | Send Message
     
    Funny. Everyone bashed LNG and push it below $5 not a long back.
    21 May 2013, 05:00 PM Reply Like
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