Page 5 - AsianOil Week 02 2021

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Eikon. This figure means China overtook Japan onward shipment from the proposed Amigo
as the world’s top importer of the super-chilled LNG project. Given that the only FID on a liq-
fuel for a second straight month in December. uefaction project to be made last year involved
The data also showed that Japan was set to a different Mexican terminal – Sempra Energy’s
import record monthly volumes of around Energía Costa Azul LNG – that will also use
8.1mn tonnes in December. feedstock gas from the US, it appears that the
Records for imports are also helping set idea of exporting US gas as LNG from Mexico
records for exports on the other side of the is gaining traction. At least one other potential
equation. The US Energy Information Admin- LNG terminal on Mexico’s Pacific Coast has
istration (EIA) estimated, based on Bloomberg been under discussion recently.
Finance shipping data, that US exports of LNG In the US too, there may be some movement
had set a new record in December, averag- on projects that are still awaiting FID. In late
ing 9.8bn cubic feet (278mn cubic metres) per December, Texas LNG signed a 50-year lease
day. This followed a previous record of 9.4 bcf agreement with the Port of Brownsville, becom-
(266 mcm) per day that US LNG exports set in ing the third of three proposed LNG ventures
November. to do so. Texas LNG’s founder, Vivek Chandra,
The EIA said US LNG exports in December described the lease agreement as an important
were more than three times higher than the step in the development of his company’s export
reduced export levels seen during the summer project.
of 2020, when numerous buyers cancelled car- Texas LNG says on its website that it is target-
goes that had been scheduled for loading at US ing an FID in 2021. Other US LNG projects had
terminals. also been aiming for an FID this year, including
Tellurian’s Driftwood LNG and NextDecade’s
Long-term bullishness Rio Grande LNG. However, given that FIDs rely
While current conditions are particularly good on factors including obtaining sufficient cus-
news for LNG sellers in the short term, there are tomer commitments, further delays cannot be
signs that at least some developers are feeling ruled out.
more bullish about their longer-term prospects. That said, demand for LNG to be regasi-
This can be illustrated by planned export pro- fied and used in heating and power generation
jects that are currently making progress, after is growing faster than for any other fossil fuel,
many were stalled in 2020 as market conditions according to Bloomberg, as numerous countries
deteriorated. look for a cheap, reliable and cleaner alternative
One recent development is the approval that to coal. This suggests that demand growth will be
Singapore-based LNG Alliance received from there beyond the current spike, potentially pav-
the US Department of Energy (DoE) to export ing the way for more exporters to sign offtake
US gas to Sonora, Mexico for liquefaction and deals and reach FIDs.™

Week 02 14•January•2021 www. NEWSBASE .com P5