THE first cargo of liquefied natural gas (LNG) has set sail from a US$15 billion Texas export terminal, amplifying America's growing influence on the global market for the fuel
THE first cargo of liquefied natural gas (LNG) has set sail from a US$15 billion Texas export terminal, amplifying America's growing influence on the global market for the fuel. LNG Jurojin departed Freeport LNG Development LP's facility on Tuesday, according to a statement from the company, making the terminal, 67 miles south of Houston, the fifth to ship super-chilled gas from US shale fields.
Royal Dutch Shell will take the first two deliveries from Freeport, according to a person familiar with the matter. The cargo is headed for the Jebel Ali terminal in Dubai, the United Arab Emirates, ship-tracking data on Bloomberg show.
Since the first US LNG export terminal began operating in Louisiana in 2016, the nation has become the world's third-largest supplier of the fuel, sending gas to buyers as distant as Japan.
The start-up of Freeport has provided a key outlet for Texas production; helping to boost gas prices from 1990s-era seasonal lows.
America may surpass Qatar and Australia to become the biggest exporter by 2025, according to Morgan Stanley. But a global glut is threatening the derail the next wave of US LNG projects.
Freeport is seeking to build four LNG production units, or trains, with a capacity of more than 20 million tons per year, most of which is contracted under 20-year supply agreements. Train 1 was previously slated to begin production in the fourth quarter of 2018, but was delayed amid contractor snags.
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