• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 2 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 30 mins How Far Have We Really Gotten With Alternative Energy
  • 11 hours If hydrogen is the answer, you're asking the wrong question
  • 4 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 6 days The European Union is exceptional in its political divide. Examples are apparent in Hungary, Slovakia, Sweden, Netherlands, Belarus, Ireland, etc.
  • 24 hours Biden's $2 trillion Plan for Insfrastructure and Jobs
  • 5 days "What’s In Store For Europe In 2023?" By the CIA (aka RFE/RL as a ruse to deceive readers)
Bitcoin’s Success May Be Its Downfall

Bitcoin’s Success May Be Its Downfall

Bitcoin is on the brink…

Iron Ore Futures Take a Hit as Chinese Demand Wavers

Iron Ore Futures Take a Hit as Chinese Demand Wavers

Iron ore prices have suffered…

Commonwealth LNG Strikes Supply Commitments for Louisiana Plant

Commonwealth LNG has struck purchase commitments with European clients for almost half the annual capacity of its liquefaction plant in Louisiana, Reuters reports, quoting chief executive Paul Varello. The total capacity of the facility is 8.4 million tons of LNG per year.

“We are exchanging documents with counterparties that will represent three to four million tonnes” Varello said in an interview. The executive added, “We have to work hard to get closer to the full 8 million tonnes in heads of agreements to allow us to feel good about getting 6 million tonnes in final agreements.”

The company is promising prices of less than US$2.50 per million British thermal units under long-term contracts of 20 years. Europe is a natural focal point for future LNG supplies from the new liquefaction terminals currently under construction in the United States, but purchase commitments need to be secured in advance so the companies building the facilities get the loans they need to build the projects.

The Louisiana facility has yet to get the final investment decision of Commonwealth, which should happen by the third quarter or the end of 2020, after which construction will begin. Launch of the project is scheduled for 2024.

Long-term contracts have become difficult to secure in LNG because of the abundance of fuel on spot markets and the price sensitivity as more and more liquefaction terminals come on stream in places like Australia and Russia, as well as in Africa. Yet LNG producers need long-term commitments from buyers to get the funds they need to build the facilities.

In the United States, some 10 new LNG plants are being planned or are already under construction as the shale boom has boosted the availability of cheap natural gas to be liquefied and sent to international markets, with a focus on Europe and Asia.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News