Cheniere Energy strikes LNG export deals with China

[thackney]

Cheniere Energy strikes LNG export deals with China
https://www.chron.com/business/energy/article/Cheniere-Energy-strikes-LNG-export-deals-with-12564631.php
 February 9, 2018

heniere Energy announced Friday that it has struck two long-term deals to sell liquefied natural gas to China's state-controlled oil and gas giant.

The Houston-based energy company will sell about 1.2 million tons of LNG a year to PetroChina International Co., a subsidiary of China National Petroleum Corporation, as part of two sale agreements that extend through 2043. Shipments will begin this year and ramp up in 2023.

In a statement, Cheniere president and CEO Jack Fusco called China "one of the largest and fastest growing LNG markets worldwide." The country has recently accelerated a shift from coal to natural gas in an effort to address an air pollution crisis in many of its urban areas....

[IsailedawayfromFR]

I guess these deliveries will transit the Panama Canal.

I can not recall many LNG shipments sold to East Asia from GC.

[thackney]

I guess these deliveries will transit the Panama Canal.

I can not recall many LNG shipments sold to East Asia from GC.

I would think so.

Expanded Panama Canal reduces travel time for shipments of U.S. LNG to Asian markets
https://www.eia.gov/todayinenergy/detail.php?id=26892
JUNE 30, 2016



The newly expanded Panama Canal will be able to accommodate 90% of the world's current liquefied natural gas (LNG) tankers with LNG-carrying capacity up to 3.9 billion cubic feet (Bcf). Prior to the expansion, only 30 of the smallest LNG tankers (6% of the current global fleet) with capacities up to 0.7 Bcf could transit the canal. The expansion has significant implications for LNG trade, reducing travel time and transportation costs for LNG shipments from the U.S. Gulf Coast to key markets in Asia and providing additional access to previously regionalized LNG markets....

[IsailedawayfromFR]

I would think so.

Expanded Panama Canal reduces travel time for shipments of U.S. LNG to Asian markets
https://www.eia.gov/todayinenergy/detail.php?id=26892
JUNE 30, 2016



The newly expanded Panama Canal will be able to accommodate 90% of the world's current liquefied natural gas (LNG) tankers with LNG-carrying capacity up to 3.9 billion cubic feet (Bcf). Prior to the expansion, only 30 of the smallest LNG tankers (6% of the current global fleet) with capacities up to 0.7 Bcf could transit the canal. The expansion has significant implications for LNG trade, reducing travel time and transportation costs for LNG shipments from the U.S. Gulf Coast to key markets in Asia and providing additional access to previously regionalized LNG markets....

Wow.  Unbelievable this is more economic to get from USA rather than Qatar or Western Australia to Pakistan.

Am suspecting this is not much of technical reasons related to economics such as capital +  opex but simply the onerous royalties demanded by the host governments sending the gas.

If so, they are really screwing themselves, as the USA has a hellavu lot of LNG growth ahead of it, and we will be the winners and they will be the losers.

[thackney]

Related is the large growth in LNG demand.

...Only 15 countries imported liquefied gas in 2005. Twelve years later it has more than tripled, with such major economies as Pakistan, Thailand, Jordan, Egypt, Poland and Colombia becoming importers in the last few years.

Bahrain, Bangladesh, Ghana, Haiti, Namibia, Panama, the Philippines and Uruguay are building import terminals, according to the International Energy Agency.

At the same time, gas demand for public transport is growing in Iran, Pakistan and Argentina....

https://www.nytimes.com/2017/10/16/business/energy-environment/liquified-natural-gas-world-markets.html