US LNG Into Europe Could Create New Floor

US LNG can be imported at a profit into Europe for as little as $4.50/MMBtu, according to Cheniere Energy, which could start exporting LNG from the US Gulf early next year. At that price it has the potential to create a new floor in Europe’s gas market, enabling it to compete with the region’s lowest-cost supplier – Russia. It could also pressure LNG prices in Asia, where spot cargoes are being priced off the UK’s NBP gas hub plus shipping, to new lows in 2016. Europe is a more-profitable market for US LNG than Asia, Cheniere boss Charif Souki said recently in Paris. While spot prices in Asia remain at a premium to Europe, the higher shipping costs to Asia make Europe a more attractive market for flexible LNG volumes set to come out of the US. Please fill out form below to view article.