US Commonwealth LNG to announce 1 mln T supply contract in 'a day or two', exec says
SINGAPORE, Sept 5 (Reuters) — A U.S. liquefied natural gas (LNG) export project, Commonwealth LNG, plans to announce a long-term deal to supply 1 million metric tons of LNG with a company involved in global trade in ‘a day or two’, Executive Chairman Paul Varello told Reuters.
“I would call them more of an LNG trader, so they can ship anywhere in the world. We’re selling at our dock, FOB (free on board)”, Varello, also the company’s founder, said on the sidelines of the Gastech conference in Singapore on Tuesday.
Commonwealth LNG is developing an LNG export terminal on the U.S. Gulf Coast near Cameron, Louisiana. (Reporting by Sudarshan Varadhan; Writing by Katya Golubkova; Editing by Jacqueline Wong)
Related Knowledge Center: Liquefied natural gas
Driven by plentiful natural gas produced from shale plays, the United States began exporting liquefied natural gas in 2016 when the Sabine Pass terminal in Louisiana opened and shipped its first cargo. Since then, additional capacity, or trains, have been added to Sabine Pass, and terminals have become operational in Cameron Parish, La.; Hackberry, La.; Cove Point, Md.; and Corpus Christi, Texas. The Energy Information Administration projects that U.S. LNG export capacity will reach 8.9 billion cubic feet per day (Bcf/d) by the end of 2019, making it the third largest in the world, behind Australia and Qatar. The tariff war with China has the potential to impact some final investment decisions for additional terminals in the coming months.