Could Shale Gas in Europe Squeeze LNG Exports?

The one issue with developing liquefied natural gas export facilities is the time it takes to build one of these facilities. If Europe starts to tap some of its own shale gas reserves, it could bring down natural gas prices in the region and chip away at the potential profitability of LNG exports.

Can American LNG exporters get up and running in time, or will European shale gas start to flow sooner than we expected? In this video, Motley Fool contributor Tyler Crowe and analyst Joel South discuss why LNG exports are looking to race against time and who is in position to win.  

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Read/Post Comments (4) | Recommend This Article (4)

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  • Report this Comment On February 04, 2013, at 9:48 AM, azdannyboy wrote:

    I do agree to a certain point but aside from political obstructions in Europe they also have to deal with Geographic obstructions, getting the drill rigs to the locations which I understand could be a problem as well as getting the gas to a port to be liquified and exported. I still believe our gas will be more abundant and cheaper than Europe and Asia, and as the author's have said Cheniere is well positioned with 20 year contracts as well as having a substantial lead in the construction of LNG trains. I am an owner and continued buyer.

  • Report this Comment On February 04, 2013, at 12:47 PM, mikevr1463 wrote:

    Kitimat's LNG export target is Asia, not Europe

    Polish NG estimated reserves are shrinking, e.g. from 5 Tcf (2011) to 0.5 Tcf (2012). Both the Polish and Ukrainian govt estimates of reserves may be more fueled by national hostility to Russia than reality.

    Other than Russia and Norway, the predominant LNG-export-to-Europe competitor is Qatar (unmentioned in article).

  • Report this Comment On February 05, 2013, at 6:30 AM, amvet wrote:

    There is another question. Will US LNG exports to Europe actually happen?

    Look at Cheniere´s 20 year contract with Total.

    Total will pay 115% of the Henry Hub price + $2.15. Total will take the LNG at the terminal in Texas. Add shipping and regasification costs of, say, 80 cents.

    To match Gazprom´s current price in Northern Europe ( $10.48) the Henry Hub price should be below $6.45. Shale gas break even price is said to be $6 to $8. With good luck the first shipments will be in 2015.

    Do not forget that the US now has twelve regasification terminals (unused) that were built at great cost based on the prediction that we would import massive amounts of LNG:

  • Report this Comment On February 05, 2013, at 6:36 AM, amvet wrote:

    Regarding Qatar, it is reported that their gas has a lot of liquids so that they sell the liquids at a good price and then sell their LNG at a very low price in Europe.

    ?????

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