Special to Wyoming Energy News

In 2008, the LNG industry in North America witnessed a new trend where regasification companies started applying for permission to re-export whole or part of their imported LNG to markets outside North America.

Sabine Pass LNG LP, a subsidiary of Cheniere Energy Inc. (Cheniere Energy), has submitted an application with the Federal Energy Regulatory Commission (FERC) to re-export previously imported LNG to lucrative markets overseas. Cheniere Energy has been strategically pursuing the growth of Liquefied Natural Gas (LNG) receiving terminals in North America.

Once this is permitted, LNG importing regasification companies in North America will purchase LNG at
current market prices. This will later be sold to customers within Asian and European markets where the
prices are high. A major impetus for this move has been the shortage of LNG supply to North America,
especially the US and the under utilization of several regasification terminals.

LNG Starved North American Regasification Industry

In 2008, North America accounts for 22.1% of global regasification capacity and is expected to account for 35.8% by 2012. Although the liquefaction capacity in North America is expected to remain constant till 2012 at 1.3 Million Tones Per Annum (MTPA), regasification capacity is expected to increase from 5,871.04 Billion Cubic Feet (Bcf) per annum in 2007 to 16,974.49 Bcf per annum (313.2 MTPA) in 2012.

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