Posted on 10/26/2015 6:40:26 AM PDT by Trumpinator
U.S.-based Cheniere Energy doesn't believe it will become Europe's leading liquefied natural gas (LNG) player despite bullish export plans.
The company, headquartered in Houston, is at the forefront of what is being called a U.S. energy renaissance with plans to churn out its first batch of LNG for overseas shipments in the next few months.
Export production volumes at its Sabine Pass export terminal are expected at 27 million metric tons per year (mmtpy), a number set to rise to 60 mmtpy by 2025. That's sparked market talk of whether Cheniere could overcome Russia to become Europe's leading supplier once it begins exporting to the region. Gazprom, Russian state-owned company, currently supplies more than 30 percent of Europe's gas.
But CEO Charif Souki remains cautious, for now.
"Russian gas will still be the dominant player in Europe," he said at the Singapore International Energy Week conference on Monday.
"Cheniere's entry into Europe won't dent [LNG] prices there
I don't see us as price makers."
(Excerpt) Read more at cnbc.com ...
Of course, Russia has the huge advantage that they have multiple lines of natural delivery into western Europe—many built in the 1970’s to 1990’s. Indeed, it’s still Gazprom’s biggest export market despite the sanctions against Russia.
See all those “GAZPROM” signs around the athletic fields at the TV sports events? That’s Russian Gas kiddies. Dey be da’ man when it comes to passing gas.
Like Guido the Killer Pimp said in “Risky Business”......”Never f... with another man’s livelihood”
...especially Putin’s.
It could work, IF Europe is willing to pay ten times the price for the gas.
Gas transported by ship will never be competitive with the cost of pipeline delivery.
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