Wednesday, November 10, 2010

LNG U-Turn Heading to Britain

This weekend, a shipment of LNG will be re-exported from the U.S. to Great Britain.  While only a drop in the proverbial bucket of worldwide natural gas supply, it is a symbolic shipment because the gas shipped to Britain can be piped directly to Northern Europe via a pipeline to Belgium and distributed to customers that have long been held captive by Russian natural gas and its oil-indexed pricing.

The article linked above has more details, but it is yet another indication of the widespread impact of North American shale gas on the worldwide natural gas market, including further erosion of Russia's clout in Europe.

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