LNG firms focus on the long term

A worldwide glut of natural gas means it’s a lousy time to be trying to export the stuff, though proposals for liquefied natural gas exports from the Port of Brownsville are focused on the future, not the present.

Still, for exporters the short term looks bleak. AltaGas Ltd., a Canadian company, dropped plans late last month to ship liquefied natural gas from the north coast of British Columbia because it couldn’t find enough Asian buyers willing to sign long-term “off-take” contracts, according to The Globe and Mail, Canada’s national newspaper.

The media outlet also reported that the future of 19 other British Columbian export projects is in doubt due to the weak market.

Closer to home, Cheniere Energy Inc. exported a load of LNG to Brazil from its new Sabine Pass, Louisiana, terminal on Feb. 24. It was the first-ever LNG export from the lower 48 states, though the shipment took place against a backdrop of what the U.S. Energy Information Administration, in a report released March 4, termed “uncertainty in global LNG demand.”

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