US LNG set to embrace tolling agreements

The underuse of capacity at LNG plants in the US will get worse as projects based on tolling structures start to come online in Q4 2017 The underuse of capacity at LNG plants in the US will get worse as projects based on tolling structures start to come online in Q4 2017.
By Abhishek Kumar 14 November 2017 0 28366
Cameron LNG plant The Cameron LNG plant in the United States. (Engie)

Directional impact on forecast:
Bearish on spot LNG prices

The profile of LNG exports from the United States has been far from perfect in terms of capacity utilisation at existing plants. This problem is expected to worsen once projects based on tolling agreements start to come online while the global LNG market remains oversupplied. Dominion Energy’s Cove Point plant will be the first US project based on a tolling structure and is due to come online in Q4 2017.

The US currently exports all of...

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