Exports of CNG Moving Toward Reality! Haynesville on the Horizon.
This facility is in Maryland, and it’s designed to ship northeast CNG from the Marcellus and Utica natural gas fields in Pennsylvania, New York, Ohio and West Virginia. Dominion Resources plans to load a billion cubic feet of natural gas per day at Cove Point. But Dominion’s plans are a drop in the bucket compared to the potential of CNG available from the Haynesville resources.
Cheniere Energy announced plans to upgrade their Sabine Pass facility in Louisiana to accommodate natural gas exports – simply by gaining the capability to perform liquefaction of the gas. The upgrade was made public in July.
The $6 billion invest expected to be up and running as an export terminal by 2015. The Haynesville Shale product will then be available to a world market. 2.2 billion cubic feet of natural gas per day compared to the 1.2 billion out of Maryland will make Louisiana CNG that more valuable.
So all the development today will bring the current $3 locally prices LNG to a world market market that is paying over $16 for the equivalent product.
See detailed article at The Hayride.