U.S. liquefied gas exports face mounting opposition
Any thought about this article since we holding DGAZ.
Financial Times’ Ed Crooks has a piece worth reading on mounting opposition to U.S. liquefied natural gas exports. Some argue, for example, that if exports are allowed willy-nilly, the price of natural gas would skyrocket.
That controversy, Crooks writes, is one reason why the impact of the U.S. shale gas revolution in world markets is likely to be more muted than some may expect.
The Department of Energy has received 21 applications for LNG export terminals, and so far only one — Cheniere Energy Inc.’s LNG +2.39% Sabine Pass in Louisiana — has been approved, according to the DOE.
Cheniere has signed 20-year agreements with four companies for liquefaction services at Sabine Pass, the company said on its website. They are the U.K.’s BG Group, South Korea’s Kogas, Spain’s Gas Natural Fenosa, and India’s Gail. Cheniere said the contracts will provide “stable revenue” 89% of the project’s anticipated LNG production.
Companies such as BP PLC BP -0.08% , Royal Dutch Shell PLC RDSA -0.69% , Osaka Gas, and Tokyo Electric Power have been signing export deals, the Financial Times said.
The reason there is "opposition" to exporting NG is that many companies rely on it for their manufacturing processes, the main one being DuPont. They have lobbied (bribed) congress for years to keep NG from being exportable, because it would cost them more to do business. But this is not sound reasoning, and will be overturned by next Energy Secretary. They can have two prices for NG. One for export, and one for domestic. That way, everybody's happy. But we should not be allowing a small amount of companies to hold the entire country hostage. They have to free NG for export, and the U.S. would increase it's wealth dramatically & create tens of thousands of jobs. I am sure this will happen. Only a matter of time. If not, why are we building all these shale gas operations. We already have more than enough NG than we use, and are capping production on traditional wells. They will export. Bet on it. Buy LNG & CQP, it's parent company, which pays a 7% dividend. you can't lose there. Guaranteed we will export NG, as Brazil just made a big find, and we can't allow them to be exporters while we sit on NG we can't use. There is no point in mining it if we are not going to export it. We don't need it here @ home.