• 45 mins Montenegro A ‘Sweet Spot’ Of Untapped Oil, Gas In The Adriatic
  • 3 hours Rosneft CEO: Rising U.S. Shale A Downside Risk To Oil Prices
  • 4 hours Brazil Could Invite More Bids For Unsold Pre-Salt Oil Blocks
  • 5 hours OPEC/Non-OPEC Seek Consensus On Deal Before Nov Summit
  • 6 hours London Stock Exchange Boss Defends Push To Win Aramco IPO
  • 7 hours Rosneft Signs $400M Deal With Kurdistan
  • 9 hours Kinder Morgan Warns About Trans Mountain Delays
  • 16 hours India, China, U.S., Complain Of Venezuelan Crude Oil Quality Issues
  • 21 hours Kurdish Kirkuk-Ceyhan Crude Oil Flows Plunge To 225,000 Bpd
  • 1 day Russia, Saudis Team Up To Boost Fracking Tech
  • 1 day Conflicting News Spurs Doubt On Aramco IPO
  • 1 day Exxon Starts Production At New Refinery In Texas
  • 1 day Iraq Asks BP To Redevelop Kirkuk Oil Fields
  • 2 days Oil Prices Rise After U.S. API Reports Strong Crude Inventory Draw
  • 2 days Oil Gains Spur Growth In Canada’s Oil Cities
  • 2 days China To Take 5% Of Rosneft’s Output In New Deal
  • 2 days UAE Oil Giant Seeks Partnership For Possible IPO
  • 2 days Planting Trees Could Cut Emissions As Much As Quitting Oil
  • 2 days VW Fails To Secure Critical Commodity For EVs
  • 2 days Enbridge Pipeline Expansion Finally Approved
  • 2 days Iraqi Forces Seize Control Of North Oil Co Fields In Kirkuk
  • 2 days OPEC Oil Deal Compliance Falls To 86%
  • 3 days U.S. Oil Production To Increase in November As Rig Count Falls
  • 3 days Gazprom Neft Unhappy With OPEC-Russia Production Cut Deal
  • 3 days Disputed Venezuelan Vote Could Lead To More Sanctions, Clashes
  • 3 days EU Urges U.S. Congress To Protect Iran Nuclear Deal
  • 3 days Oil Rig Explosion In Louisiana Leaves 7 Injured, 1 Still Missing
  • 3 days Aramco Says No Plans To Shelve IPO
  • 6 days Trump Passes Iran Nuclear Deal Back to Congress
  • 6 days Texas Shutters More Coal-Fired Plants
  • 6 days Oil Trading Firm Expects Unprecedented U.S. Crude Exports
  • 6 days UK’s FCA Met With Aramco Prior To Proposing Listing Rule Change
  • 6 days Chevron Quits Australian Deepwater Oil Exploration
  • 7 days Europe Braces For End Of Iran Nuclear Deal
  • 7 days Renewable Energy Startup Powering Native American Protest Camp
  • 7 days Husky Energy Set To Restart Pipeline
  • 7 days Russia, Morocco Sign String Of Energy And Military Deals
  • 7 days Norway Looks To Cut Some Of Its Generous Tax Breaks For EVs
  • 7 days China Set To Continue Crude Oil Buying Spree, IEA Says
  • 7 days India Needs Help To Boost Oil Production
Alt Text

The Next Big Digital Disruption In Energy

Blockchain technology is transforming the…

Alt Text

Oil Prices Spike On Middle East Tensions

Oil prices jumped upwards on…

This Week in Energy: US Picks up Pace in LNG Race

This Week in Energy: US Picks up Pace in LNG Race

This week in energy, the prospect of liquefied natural gas (LNG) exports gain momentum in Washington with final federal approval for two more projects in Louisiana and Florida thanks to a tweaking of legislation.

On Wednesday, the US Department of Energy approved final permits for Sempra Energy’s Cameron LNG facility in Louisiana and Carib Energy’s small-scale export project in Florida, making them the second and third LNG export projects to win final federal approval.

The first to win a final permit to export LNG to non-Free-Trade Agreement countries was Cheniere’s Sabine Pass project in Louisiana, which was approved in 2012. Since then, some two dozen projects have waited for final approval.

Cameron will be allowed to export up to 1.7 billion cubic feet of natural gas for up to 20 years through its $10-billion project.

For Cameron, this was some significant fast-tracking helped by pressure from Congress to speed things up and the resulting Energy Department decision in August to streamline and prioritize applications. Essentially, it put those projects that already had environmental reviews and construction permits to the top of the list for federal approval. Cameron had received its construction permit in June. With this tweaking of the process, Cameron would have had to wait for a lengthy public interest determination.

The pressure on Washington is indeed growing because the race to the finish for LNG exports is a tight one and will have a major impact on long-term contracts.

Australian projects in particular are warily eyeing the two new LNG export approvals in the US and Russian progress towards the same, because it may force them to renegotiate long-term contracts already in play due to a future LNG glut.

In Australia, Chevron is have a hard time winning 20-year sales contracts for LNG from its Gorgon export plant because potential buyers see which way the winds are blowing and think they might get it cheaper if they hold out a bit. And they’re probably right. But for Chevron, this could be a blow—especially considering that the Gorgon project has a lot of costs to recoup as the world’s most expensive LNG undertaking to date.

This week we also look at Canada’s LNG prospects, and what Keith Schaefer depicts as the countdown to get massive projects off the ground.

There are at least 14 proposals to export LNG off Canada's west coast, and another one to export Canadian gas down to Oregon and ship it to Asia from there.

In this heated race, the general consensus is that Washington will have to speed things up a bit more. But the good news is that the ranks of the Democrats are growing with those who believe in US LNG exports, and the general consensus is that we will see an up-tick in the momentum to approve these languishing projects—soon.

Urgent Note: This week’s oilprice premium is a must read for all subscribers. Dan Dicker looks at the oil trade where the smart money is heading. Martin Tillier looks at an unloved natural gas company that could see some good price gains soon, Jim Hyerczyk takes a look at 3 oil stocks and where the charts say they could be going and our executive report looks at countries that could be in serious trouble if oil prices continue to fall. Get all of these reports for free – with our 30 day risk free trial – click here

By. James Stafford of Oilprice.com




Back to homepage


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News