Friday, January 27, 2017

Case Study: Exelon's Entry Into US LNG Export Market -- January 27, 2017

I track list of potential new LNG export facilities at this site.

Over at Crain's, an update on the LNG export market, with an Exelon case study. Data points:
  • awaiting federal permission to build a $3 billion LNG export plant in Brownsville, Texas
  • until recently, regulatory barriers prevented US gas suppliers from fully participating in global markets
  • US with price advantage
    • US: sells at $3.20 per million BTUs; $10 in some overseas markets
  • LNG exports could help ease pressure on Exelon's generating profits
  • but securing approval could take year! -- I thought Trump was working to stop these delays
    • by time approval given, could be too late; by then export markets could be glutted with US LNG
  • risks: China may be miffed that Trump pulled out of the Trans-Pacific Partnership 
  • not mentioned: the expansion of the Panama Canal 

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