US to Export LNG to China

Buyers from China are looking at long term liquefied natural gas (LNG) supplies from US firm Cheniere Energy, news agency Reuters quoted a company official as saying.

This would be the first LNG deal between the world's two biggest energy users. Cheniere Energy is set to become the first U.S. LNG exporter, with shipments to start by the end of this year.

However, no Chinese companies have signed up for any U.S. LNG cargoes so far.

Nicolas Zanen, vice president for Asia at Cheniere Marketing Pte, a wholly owned subsidiary of Cheniere Energy Inc, said that some Chinese buyers had already begun moving to secure supplies, although without providing any details.

"There's a lot of interest from Chinese buyers for long-term LNG volume, especially for 2020 onwards," said Nicolas Zanen, Vice President for Asia at Cheniere Marketing Pte Ltd, a wholly owned subsidiary of Cheniere Energy Inc, reported Reuters.

Meanwhile, Penn Energy reported that Cheniere finalised a deal with Chinese energy firm ENN Energy for 1.5 million tonnes per annum of bi-directional LNG from the Sabine Pass LNG terminal in Louisiana . The MOU covers a 20-year agreement for the supply of LNG to ENN, should regulatory approvals proceed as planned.

The US is ambitious in the field of LNG export and has been relaxing its own rules regarding export, giving permission for a number of designated terminals around the nation to ship the fuel overseas. The Energy Information Administration believes the country could become a net LNG exporter by 2017.