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BG Group takes on more U.S. LNG

Jan. 27, 2012 at 6:01 AM   |   Comments

READING, England, Jan. 27 (UPI) -- British energy company BG Group announced it signed a 20-year agreement to get liquefied natural gas from an export terminal in the southern United States.

BG Group in October signed a gas sale and purchase agreement for around 3.5 million tons of LNG per year. A new agreement with Sabine Pass Liquefaction, a subsidiary of Cheniere Energy Partners, adds another 2 million tons of LNG to the company's portfolio.

"The agreement adds further volume to our diversified global LNG supply portfolio and is underpinned by the recent material increases in U.S. gas reserves as well as a favorable long-term outlook for global LNG demand," BG Group Chief Executive Officer Frank Chapman said in a statement.

Exports from the Sabine LNG terminal in Louisiana are expected as early as 2015. BG Group said it was pursuing expansions to an export terminal in Lake Charles, La., following authorization by the U.S. Department of Energy for up to 15 million tons of LNG exports per year to countries that have free trade agreements with the United States.

The Energy Department's Energy Information Administration said it expected a cumulative increase in U.S. natural gas production through 2035. The United States, the agency added, is on track to become a net exporter of LNG by 2016.

© 2012 United Press International, Inc. All Rights Reserved. Any reproduction, republication, redistribution and/or modification of any UPI content is expressly prohibited without UPI's prior written consent.
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