18:09 GMT14 April 2021
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    Overseas consumers may be less inclined to import US-produced shale liquefied natural gas (LNG) despite long-term gas purchasing contracts, Rapidan Group Global Gas Director Leslie Palti-Guzman told the US Senate Energy Committee on Tuesday.

    WASHINGTON (Sputnik) — This week, the first US LNG shipment reached Europe from the Cheniere Energy Sabine Pass facility, one of five new export facilities either online or scheduled to come online in the next few years.

    "Flexible purchasing agreements, eroding international prices and weakened demand in top LNG consumer country could make the US shale-to-LNG market less attractive than it was a few months ago," Palti-Guzman stated.

    Despite securing 58 million tons worth of long-term LNG contracts with foreign importers, Palti-Guzman warned there is "no guarantee that the customers which have contracted the volumes will actually use their option to export the gas if the economics do not work."

    Global energy prices have been on a steep decline since 2014, with spot prices for LNG dropping to $5 per million Btus.

    US LNG exporters may also face challenges because of the flexible export contracts, which Palti-Guzman says buyers are free to walk away from by giving prior notice.

    liquefied natural gas (LNG), US
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