Outside interest in American natural gas is surging, with LNG developers along the Gulf Coast landing a record number of contracts this year, boosting the profile of Louisiana’s export terminals.
According to The Houston Chronicle, the most recent example of this surge came Monday night when Venture Global LNG, which is building two export terminals in Louisiana, announced it had signed a 20-year deal with the China National Offshore Oil Corp. for 2 million tons of LNG per year, along with a shorter deal for 1.5 million tons per year.
Natural gas shortages and soaring prices have sent foreign buyers flocking to the Gulf Coast. LNG sells for close to $60 per million British thermal units in Europe and more than $45 MMBtu in northern Asia, compared to the U.S. benchmark price of less than $4.
With analysts projecting rising gas demand in years to come, more deals are likely coming, says Charlie Riedl, executive director at Center for Liquefied Natural Gas, a trade group representing LNG exporters. Read the full story.