Fereidun Fesharaki, chairman of FACTS Global Energy told a recent Dubai conference that “the United States today has four LNG [export] projects. That is four real LNG projects and they have secured re-permitting before the end of the year. I am personally convinced that US exports of LNG will be bigger than Qatar or about the same, 70-80mn tons/year. And it’s coming and it’s not going to be cheap”.
He believes that once LNG tankers leave the US, possibly heading to the Asian market, pricing based on the US domestic Henry Hub benchmark will be left behind: the current international norm of oil-linked prices will be retained in any LNG sales contract. “It is going to be the same range as $80, $100/B oil…the biggest push from the United States is to go to Asia because Asians can pay for it, given the cost is way too high for the European market.” (CONTINUED - 1142 WORDS)