SOURCE: Zeus Development Corporation

Zeus Development Corporation

November 02, 2011 14:18 ET

Four Reasons Sabine Pass Beat Trunkline LNG for BG's Business (Zeus Management Briefing)

HOUSTON, TX--(Marketwire - Nov 2, 2011) - BG Group plc surprised the natural gas industry last week when it selected Cheniere Energy's LNG import terminal at Sabine Pass for export conversion over Southern Union's Trunkline terminal south of Lake Charles, La., where BG has a long-term import commitment.

BG has leased all of the import capacity of Southern Union's Trunkline terminal until 2030. In July, the U.S. Office of Fossil Energy issued an order authorizing Southern Union and BG to liquefy and export U.S. natural gas. A month later, Southern Union's subsidiary, Trunkline LNG, informed the Federal Energy Regulatory Commission (FERC) that it and BG were developing plans to install liquefaction capacity at the Lake Charles receiving terminal, roughly 50 miles (80 km) east of Cheniere Energy's Sabine Pass terminal.

Thus, analysts assumed any deal BG would strike for U.S. Gulf Coast export capacity would include Southern Union's Lake Charles terminal. Interviews by Zeus Development Corp with industry insiders, however, point to four advantages the Sabine terminal has over the Lake Charles terminal from an export point of view: 1) space, 2) pipeline access, 3) tank availability, and 4) carrier access. A management briefing, including an inventory of 21 possible North American export terminals, can be downloaded at www.zeusintel.com/NALNG2011/ZeusAnalysis

"BG's decision has implications for all U.S. developers vying to add liquefaction capacity to become exporters," said Bob Nimocks, president of Zeus Development Corp. Zeus will host its second "North American LNG Exports 2011" conference in Houston, December 1st to discuss these implications and their opportunities. Cheniere, along with Apache Corp, Air Products, Dominion Resources, Federal Energy Regulatory Commission, Oregon LNG, Panama Canal Authority, RS Platou, Sutherland, and Texas Alliance of Energy Producers will give their perspectives at the conference. Full details can be obtained at www.zeusintel.com/NALNG2011.

Contact Information

  • Contact:
    Sally Dewitt
    Conference Manager
    713-952-9500
    Email Contact