LNG (LIQUIFIED NATURAL GAS)

US pushes to clear Australian LNG exports: report

AUSTRALIAN natural gas producers could be part of a multi-billion dollar deal with the United States by the end of this decade, according to media reports this morning.

US pushes to clear Australian LNG exports: report

The Australian newspaper said the US government was working to clear the final barriers for the sale of Australian LNG to the nation by 2010.

Companies such as BHP Billiton have been lobbying Washington for three years to win access to the US market and sell LNG from its Scarborough field in Western Australia. But concerns regarding the safety of LNG has stalled approval for a large terminal off the California cost that would transfer the gas from ships for sale in the US.

Speaking ahead of an energy and climate conference in Sydney this week, White House adviser James Connaughton said the US was looking to open up its market to LNG providers.

“Having LNG as an opportunity in the US enhances our energy security, because it promotes a diversity of potential future supply, so we’re not reliant on one particular area,” Connaughton told the newspaper.

“We have a dedicated commitment to opening up the opportunity for a lot more LNG to America.”

Each year, the US consumes the equivalent of all North West Shelf gas reserves and energy consumption growth is expected to be about 1.5% per annum.

To date, Australian LNG sales have been to Asian markets in Japan, Korea and China.

Meanwhile, Shell – a partner in the $11 billion Gorgon gas project – plans to sell Australian gas to North America through a terminal in Mexico.

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A growing series of reports, each focused on a key discussion point for the energy sector, brought to you by the Energy News Bulletin Intelligence team.

A growing series of reports, each focused on a key discussion point for the energy sector, brought to you by the Energy News Bulletin Intelligence team.

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