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US approval of Lake Charles LNG exports likely to curtail future prices

10.11.2013  | 

The US investment bank predicts the Lake Charles export project will get necessary financing for construction, with a final investment decision expected in 2015, according to a new report from Goldman.

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By CHOU HUI HONG

(Bloomberg) -- BG Group’s Lake Charles LNG project will add almost 2 Bcfd to United States gas exports by 2021 and help limit higher prices, Goldman Sachs Group said in a report.

The terminal will bring United States exports of liquefied natural gas to 7.7 Bcfd, assuming 8.7 Bcfd of liquefaction capacity is built, Goldman Sachs analyst Samantha Dart in London said in an e-mailed report.

The US investment bank predicts the Lake Charles export project will get necessary financing for construction, with a final investment decision expected in 2015, according to Dart.

“From the perspective of the global LNG market, this means that the balance from 2020 will likely be softer than we previously expected, as future demand will have more supply available to draw from,” Dart said. “However, at this point we do not expect the 2020-2023 market balance to be as soft as in 2016-2017, when we expect global liquefaction capacity to rise significantly.”

The Lake Charles project got approval on August 7 from the Department of Energy to export LNG to countries who do not have a free trade agreement with the US.



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