US sets record exports to Japan for LNG
Reuters:
I suspect that Trump's trade agenda is one reason for Japan's switch to US sources. The President has been concerned about the trade balance and matching Japanese exports of goods to the US.
Japan’s liquefied petroleum gas (LPG) imports from the United States are expected to double in 2017 to a record and account for around for around half of its total purchases, government and shipping data showed.Texas production from the prolific Permian Basin area will soon be getting another pipeline to the Gulf for exports:
The surge comes as shale oil and gas output lifts overall U.S. production to rival that of Saudi Arabia and Russia.
As with crude oil, the American exports displace LPG from the Middle East, where regional top producer of crude and LPG Saudi Arabia is losing market share, not least due to knock-on effects from the efforts led by the Organization of the Petroleum Exporting Countries (OPEC) to cut production in order to prop up prices.
LPG, a byproduct of crude oil and natural gas production, is a mixture of propane and butane and is used for cooking and as a transport fuel. It is also an important feedstock for the petrochemical industry.
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Kinder Morgan commits to pipeline linking Permian to Texas Gulf CoastThe Appalachia area is also increasing production of natural gas and could soon have access to LNG shipments for exports from Atlantic ports.
(Spencer Platt/Getty Images)
Kinder Morgan has decided to proceed with a $1.7 billion natural gas pipeline running from the Permian Basin to Corpus Christi, Texas, which is expected to enter service by October 2019. The 500-mile pipeline, developed in partnership with DCP Midstream and Targa Resources, will have the capacity to carry 1.92 billion cubic feet of gas per day.
I suspect that Trump's trade agenda is one reason for Japan's switch to US sources. The President has been concerned about the trade balance and matching Japanese exports of goods to the US.
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