The US is about to change the global LNG market forever.
When the first tanker carrying liquefied natural gas from shale fields leaves the Sabine Pass terminal in Louisiana in December, it will turn consumers into traders with more bargaining power. That will transform a market dominated by long-term contracts into one where spot trading gains prominence, similar to crude oil.
Since the first LNG cargo went to the UK from Algeria under a long-term contract in 1964, buyers opted for guaranteed supply because the fuel was scarce. That’s changing because gas from the Eagle Ford and other fields will transform the U.S. into the third-biggest exporter by 2020. Spot trading will probably account for almost half of transactions by then, from 29% last year, and LNG is poised to overtake iron ore as the most valuable commodity after oil.
Source : CALGARY HERALD
Zhejiang Yaang Pipe Industry Co., Limited (www.yaang.com)