Number of US LNG buyers can increase further

Oil&Gas Materials 22 August 2017 13:56 (UTC +04:00)

Baku, Azerbaijan, August 22

By Leman Zeynalova – Trend:

The number of countries buying liquefied natural gas (LNG) from the US can increase, Professor Jonathan Stern, distinguished research fellow at Oxford Institute for Energy Studies, told Trend.

“Poland, the Baltic countries and Ukraine buy US LNG because they regard independence from Russian gas as important to their energy and national security. But aside from the mentioned countries, everything will depend on price and competitiveness,” the expert believes.

If US LNG is cheaper than other sources of gas, it will be purchased, if it is not, then it won’t, said Stern, adding that at present, it is likely that US LNG will be sold outside Europe, but it is not really possible to predict where and how much.

“US LNG will provide a price ceiling above which no gas can be sold in Europe. It will therefore constrain any Russian attempts to raise prices to higher than market levels,” he added.

On Aug.21, the first batch of LNG was delivered to Klaipeda port of Lithuania from the US. Poland received first US LNG on June 7.

The US Energy Information Administration (EIA) expects the country’s LNG exports to increase in coming years.

“US liquefaction capacity continues to expand as five new projects currently under construction come online in the next three years, increasing total US liquefaction capacity from 1.4 billion cubic feet per day at the end of 2016 to 9.5 billion cubic feet per day by the end of 2019,” said the report from EIA.

Based on construction plans, EIA expects that by 2020 the United States will have the third-largest LNG export capacity in the world after Australia and Qatar.


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