Financial Times
US, Australia could divide up the globe as burgeoning energy superpowers

Tuesday, January 08, 2013

The emerging shale gas sector in the US is making the country a major energy exporter, which may undercut or complement Australia's rise as an energy power, writes Ben Potter in Washington.

The United States's abundant cheap shale gas threatens to undercut Australia's liquefied natural gas exports to prize Asian markets later this decade as US LNG exports get under way.

But these US exports could play to Australia's advantage too.

It's "full steam ahead on LNG exports" from America, wrote UBS utilities analysts in a client note last month.

But the American LNG train is going to be a while coming to market.

Cheniere Energy Partners has just signed a 20-year deal to sell 2 million tonnes a year of LNG to Total SA from its proposed LNG export plant at Corpus Christi, Texas.

First deliveries are not expected until 2018. Anthony Sweet, an analyst with Denver-based BENTEK Energy, expects total LNG exports of just 3 billion cubic foot per day by 2018.

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