US LNG losing some of its lustre thanks to oil
The Cameron LNG project. Low oil prices may hit Asian interest in LNG from the US Gulf coast. (Sempra LNG)
Slumping oil prices could close the arbitrage window for buyers looking to ship LNG from the Gulf coast of the United States to Asia, with analysts forecasting Asian interest in new US offtake contracts will slow further next year.
"Asian buyers are already getting indigestion from their US LNG commitments," Andy Flower, an independent LNG consultant, told Interfax. "Asian buyers piled into the US because they thought the LNG would be cheap, but the current market is a warning that it might not be as competitive as they initially thought."