Obama Likes the Sound of Natural Gas Exports
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  • Bill_Woods

    “Natural gas doesn’t ship as cheaply or easily as oil; it has to be liquified before it makes it onto container ships.”
    LNG isn’t shipped in container ships, but in specialized insulated tankers. See
    http://commons.wikimedia.org/wiki/File:LNGtanker.jpg
    or
    http://commons.wikimedia.org/wiki/File:Methanier_aspher_LNGRIVERS.jpg

  • The O man is still not going to okay the XL pipeline until after the 2014 election.

  • crocodile chuck

    “But thanks to the shale gas bonanza, the US now seems set to permit LNG export facilities. What a difference a few years can make”

    This shopworn trope of VM is past its shelf life. Do the facts in the post linked below give anyone any confidence that LNG terminals with their ruinously high CapEx will ever be built?

    http://resourceinsights.blogspot.com.au/2013/05/patient-contrarians-natural-gas-market.html

    Moreover, does whoever authors this blog understand the dynamics of the energy market?

    • BrianFrankie

      LNG export terminals do not have a ruinously high CAPEX. VM’s estimate is actually a bit high. LNG export facility retrofits amortised CAPEX comes to around $3/MMBTU in the US at existing import terminal locations. And they are, indeed, being built. Here is the first one, which is under construction and will be online in 2016:

      http://www.cheniere.com/lng_industry/sabine_pass_liquefaction.shtml

      The economics look quite good. Get natgas from Henry Hub at $4/MMBTU, liquefy for $3/MMBTU, ship to Asia for $2/MMBTU, and sell it for $18/MMBTU, which is current spot price for many cargoes going into Japan. These Projects can be very profitable.
      The post you linked does not seem to have many facts or understand energy markets well.

  • Fat_Man

    The US will export gas. It has no choice in the matter. It owes far too much to foreigners.

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