Friday, October 22, 2010

LNG U-Turn

I noted yesterday that the Golden Pass LNG port received its first delivery of liquefied natural gas (LNG) from Qatar.  It is worth noting that earlier in the week, two shipments of LNG were re-exported from terminals at Sabine Pass, LA (Cheniere) and Freeport, TX (Freeport LNG).

The two cargoes in question represented gas that was imported and then re-exported and therefore were not true LNG exports.  The good news is that the imported gas didn't further exacerbate the current oversupply of gas in the U.S.  Exporting LNG is a ways down the line, but both facilities are pursuing the option.

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