US LNG Marketing Worldwide: Success or Failure?

The changing seasons have brought only positive news to Cheniere Energy, which was the first US company to launch LNG plant in the Gulf of Mexico. On February 24, exactly one year had passed away since the first LNG cargo left Sabine Pass. Four days later, Cheniere reported its first quarterly net profit ($110 million in 4Q 2016 versus $291 million loss one year ago).1 In late March, Train 3 of the Sabine Pass liquefaction facility came online.

Construction of LNG plants in the New World is on schedule and even low hydrocarbon prices over the last two and a half years have not unhinged the project implementation. America is on its way to enter the top three of the biggest LNG producers by 2020.

The one-year anniversary since the start of US LNG exports is a reason to assess some interim results and analyze further developments. In this study, we shall attempt to answer the following questions:

  • How much US liquefied natural gas was shipped, where it was marketed and at what price?
  • Who of the marketing chain stakeholders benefits even in a low gas price environment?
  • What are the medium-term prospects for US LNG in the global market?

Head of Research