Dominion's Cove Point project on the US east coast may have shot up to second place in the US LNG export queue behind Cheniere Energy's Sabine Pass, after India's Gail and Japan's Sumitomo on Apr. 1 each signed 20-year tolling deals for 2.3 million tons per year of Cove Point LNG starting in 2017. Sumitomo has in turn sealed preliminary deals to sell 1.4 million tons/yr to Tokyo Gas and 800,000 tons/yr to Kansai Electric. Breaking with Asia's traditional oil-linked price formula, the LNG will be priced off US Henry Hub, with delivery on an f.o.b. basis — posing a potential threat to LNG projects outside the US that need an oil price benchmark to be financially viable (WGI Sep.26'12).
展开▼
