LNG exports to come?

Discussion in 'West Mall' started by zork, Jul 29, 2015.

  1. zork

    zork 2,500+ Posts

    While looking for news on the latest Iran agreement I ran across this press release from Senator Barrasso:

    http://www.barrasso.senate.gov/publ...eases?ID=3aa6f6e2-63af-4b69-b9f0-8983743737e1

    Hello Europe, would you like to buy this LNG for the upcoming winter?
     
  2. Mr. Deez

    Mr. Deez Beer Prophet

    This is about making Europe less dependent on Russia. That's a good thing.

    (As for me, I have geothermal heat, so LNG wouldn't be much use to me.)
     
  3. Musburger1

    Musburger1 2,500+ Posts

    There is no way the U.S. can export LNG and be competitive with Russia delivering via pipeline. Iran is a different matter if a pipe route to Europe can be established.
     
  4. Horns11

    Horns11 10,000+ Posts

    What Mus said. Even if we CAN export natural gas, it's not going to be enough to compete with the existing trade routes for petroleum products.
     
  5. Mr. Deez

    Mr. Deez Beer Prophet

    You're probably right. I hope we're not helping Iran to try to harm Russia.
     
  6. zork

    zork 2,500+ Posts

    It might reduce the ability of Russia to extort to the extent that there might be a semi-viable alternative where there is none now. It might have the perverse action of making Russia more money as they inch their price to a point below the US exported LNG price and above their current prices when the next contract comes up. I'm sure there will be ways to figure out the markets to see when, if , they can be set up for some LNG exports to places in/near Europe where it is already expensive. Then if the Russians threaten or actually cut off the NG the US can ramp to meet the higher priced demand not fulfilled by the cranky Russians.

    Either way the ability to do so with the proposed act from Congress should be encouraged.
     
  7. Monahorns

    Monahorns 5,000+ Posts

    Exporting LNG can help reduce EU dependence on Russia in a limited case. The case involves continuing low NG prices and continuing high oil prices. The other aspect that energy demand has to be able to adjust to more gas and less oil. The idea is that when demand for NG goes up high enough due to low enough price, some of the oil bought from Russia will decrease enough to hurt. Currently, the low oil prices are hurting Russia without the US exporting anything.
     

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