Port Arthur LNG signs 20-year supply deal with Poland

[thackney]

Port Arthur LNG signs 20-year supply deal with Poland
https://www.chron.com/business/energy/article/Port-Arthur-LNG-signs-20-year-supply-deal-with-13477212.php
 December 19, 2018

Port Arthur LNG has signed a 20-year supply deal with Poland's state-owned natural gas company.

The Sempra Energy-owned facility and Polish Oil & Gas Company, or PGNiG, announced the liquefied natural gas deal early Wednesday morning.

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Financial terms were not disclosed but Sempra Energy confirmed that the agreement is for the sale and purchase of 2 million metric tons of LNG per year, an amount that will meet about 15 percent of Poland's daily needs....

[thackney]

http://portarthurlng.com/

[Hoodat]

Sabine Pass is a hot area for LNG.  Initially, these ventures will be earning huge profits.  But the tradeoff will be higher grass prices for American consumers who will now be competing against Europe.

[thackney]

Sabine Pass is a hot area for LNG.  Initially, these ventures will be earning huge profits.  But the tradeoff will be higher grass prices for American consumers who will now be competing against Europe.

These LNG plants are a small portion of our overall Natural Gas Industry. ~10%.

The LNG market only is economical if the source gas is relatively cheap compared to the delivery market.  Making the Gas Liquid, Transporting, then Regasification is more expensive than gas itself.

If our prices rose to even half the price of the delivery point, the LNG process would lose money.

World LNG Estimated Landed Prices:
Updated: Nov-18
https://www.ferc.gov/market-oversight/mkt-gas/overview/ngas-ovr-lng-wld-pr-est.pdf

The economics of LNG
http://shareholdersunite.com/the-ioc-files-useful-background-material/the-economics-of-lng/

...Adding up everything, the cost to get LNG to market is in the range of around $2.90 to $4.15 per Mcf. ...

[IsailedawayfromFR]

These LNG plants are a small portion of our overall Natural Gas Industry. ~10%.

The LNG market only is economical if the source gas is relatively cheap compared to the delivery market.  Making the Gas Liquid, Transporting, then Regasification is more expensive than gas itself.

If our prices rose to even half the price of the delivery point, the LNG process would lose money.

World LNG Estimated Landed Prices:
Updated: Nov-18
https://www.ferc.gov/market-oversight/mkt-gas/overview/ngas-ovr-lng-wld-pr-est.pdf

The economics of LNG
http://shareholdersunite.com/the-ioc-files-useful-background-material/the-economics-of-lng/

...Adding up everything, the cost to get LNG to market is in the range of around $2.90 to $4.15 per Mcf. ...

I would not trust the article on economics as it is 10 years old and mentions the best LNG growth projects are

Another major issue impacting the growth of LNG production is that much of the worlds natural gas is in areas where state oil companies control production or in areas with political unrest.

which is no longer the case since the US has flexed its muscle (as well as Australia)

[thackney]

I would not trust the article on economics as it is 10 years old and mentions the best LNG growth projects are

Another major issue impacting the growth of LNG production is that much of the worlds natural gas is in areas where state oil companies control production or in areas with political unrest.

which is no longer the case since the US has flexed its muscle (as well as Australia)

The US and Australia together do not produce as much LNG as Qatar alone.

2018 World LNG Report
https://www.igu.org/sites/default/files/node-document-field_file/IGU_LNG_2018_0.pdf
Figure 3.2: LNG Exports and Market Share by Country
Page 9

Country, exports in MT, % of market
US   13.1   4.50%
Australia   56.2   19.20%
Qatar   81   27.60%
Malaysia   26.4   9%
Nigeria   21.3   7.30%
Indonesia   16.2   5.50%
Algeria   12.4   4.20%
Russia   11.1   3.80%
Trinidad   10.8   3.70%
Oman   8.4   2.90%
PNG   7.7   2.60%
Brunei   7   2.40%
UAE   5.2   1.80%
Peru   4.1   1.40%
Norway   4.1   1.40%
Angola   3.7   1.30%
Eq. Guinea   3.6   1.20%
Egypt   0.8   0.30%

[IsailedawayfromFR]

The US and Australia together do not produce as much LNG as Qatar alone.

2018 World LNG Report
https://www.igu.org/sites/default/files/node-document-field_file/IGU_LNG_2018_0.pdf
Figure 3.2: LNG Exports and Market Share by Country
Page 9

Country, exports in MT, % of market
US   13.1   4.50%
Australia   56.2   19.20%
Qatar   81   27.60%
Malaysia   26.4   9%
Nigeria   21.3   7.30%
Indonesia   16.2   5.50%
Algeria   12.4   4.20%
Russia   11.1   3.80%
Trinidad   10.8   3.70%
Oman   8.4   2.90%
PNG   7.7   2.60%
Brunei   7   2.40%
UAE   5.2   1.80%
Peru   4.1   1.40%
Norway   4.1   1.40%
Angola   3.7   1.30%
Eq. Guinea   3.6   1.20%
Egypt   0.8   0.30%

True at present, but way back when the report was written both Australia and UShad only 10% on the world stage, whereas now they have risen to almost a quarter of all LNG trade