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LNG is all the rage

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LNG Industry,

According to a Bloomberg report, the White House has a new darling in the energy sector: liquefied natural gas.

First top economic advisor, Gary Cohn, voiced support for a terminal in the US Northwest that would send tankers full of LNG to Asia. Then on 25 April, Energy Secretary Rick Perry praised an export terminal proposed by Exxon Mobil and Qatar Petroleum in Texas that, he said, will create about 45 000 jobs during construction and position the US as the dominant exporter of LNG to the world.

The White House is waking up to the potential jobs bonanza offered by the two dozen applications to build LNG export terminals under review.

The Energy Department cleared the Golden Pass terminal in Texas to export as much as 2.21 billion ft3 of gas a day to non-free trade agreement countries. Operations are due to start in 2021.

The agency’s approval was the last regulatory hurdle for the terminal. Its fate now comes down to a final investment decision by the owners, which may prove to be the most difficult step yet.

LNG exporters have struggled to attract enough commitments from buyers to begin construction amid a global glut of supply. In the US, no new customer agreements have been signed since mid-2016, and Golden Pass does not yet have long-term export or supply contracts in place.

While the global LNG market will probably remain oversupplied through the mid-2020s, a second wave of export projects may emerge during the next decade to meet new demand. And then Golden Pass could be arriving just in time.

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