A recent New York Times article discusses Cheniere Energy’s efforts to develop its Sabine Pass terminal in Corpus Christi, TX, to process and export liquefied natural gas to global markets.
The article reports on the long-term infrastructure investment strategies of energy companies seeking to expand the marketplace for natural gas extracted through hydraulic fracturing in the United States.
The article also notes some interesting factors that shape the market for natural gas, including the nature of the substance itself and the requirements of transportation infrastructure.
The article states, “Unlike oil, which has been moved around the world for decades in supertankers, natural gas, as a vapor, is much more complicated — and expensive — the transport. While pipelines carry natural gas over long distances, the only way to move it across oceans is through the L.N.G. process. Natural gas vapor is chilled to 260 degrees Fahrenheit below zero, turning it into a liquid that can be pumped aboard specially designed ships that keep it under pressure with minimal change in temperature. Upon arrival, the liquid is slowly warmed and converted back into conventional natural gas that can be delivered to customers.”
Nelson D. Schwartz, “How Cheniere Energy Decided to Take a Gamble on Liquefied Natural Gas,” The New York Times, October 16, 2017.