Related Articles
Forward article link
Share PDF with colleagues

Sabine Pass LNG decision expected in days

US energy firm Cheniere expects the final investment decision on its Sabine Pass liquefied natural gas (LNG) export project "in the next 30 days”, with company vice president of origination Ramzi Mroueh adding first cargoes are pencilled in for mid-2015

The 16 million tonne a year (t/y) Sabine Pass LNG facility is likely to be the US’ first LNG export plant and is the only planned project with government approvals to ship gas to any country. LNG supply deals from Sabine Pass are attractive to Asian buyers because they are linked to the US Henry Hub gas price, differing from traditional contracts which are linked to the crude oil price. At around $2.5 per million British thermal units (Btu), US gas prices are about six times lower than Asian spot LNG prices of around $16/million Btu. And Cheniere expects Henry Hub prices to remain low, with most shale-gas plays profitable at $6/million Btu. “So if they (Asian LNG buyers) are comfortable b

Also in this section
Latest licensing rounds
16 March 2018
The industry's most comprehensive list of current and recent rounds for onshore and offshore licenses
North Sea—life in the old dog
12 March 2018
There's still plenty more value to be eked out of the maturing basin, according to one of the region's most experienced operators
Nigeria targets local upstream players with marginal field round
7 March 2018
Reinvigorating production on acreage abandoned by the majors could be a tough task