US Shale Gas Shaking Up Global Markets as LNG Supply Surges
Egypt, Jordan, Pakistan and Poland all became LNG importers last year for the first time. Indonesia’s Arun terminal, which started producing LNG in 1977, has been converted for imports, according to the IEA.
In emerging markets, smaller and cheaper floating import vessels have become popular. They cost $200 million to $300 million compared with $1 billion or more for larger onshore plants. Egypt got its first two floating units last year and has been operating them at maximum capacity, said Jason Feer, head of business intelligence with ship brokerage Poten & Partners in Houston. There are 19 operating worldwide, with plans for as many as 15 more, he said.
“There are markets like Bangladesh and Pakistan where traditionally they would have gone with coal but now gas can be the cheaper option once you include the cost of new infrastructure,” Lelong of Goldman said. “You are seeing these energy poor countries often with poor credit ratings turning to LNG.”
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