Half of India’s Contracted US LNG Won’t End Up in India

MDN brought you the great news earlier this week that late Sunday night the very first shipment of Marcellus LNG had left the dock at Cove Point, Maryland (see First-Ever Shipment of Marcellus LNG Leaves Cove Point, Maryland). We still don’t know where the first shipment will end up. In the world of Big Energy and LNG, sometimes the destination isn’t known until the ship is under way! The first shipment is owned by Japan. Between Japan and India, all of the Marcellus LNG produced at Cove Point is spoken for (i.e. contracted) for the next 20 years. However, that does not mean all of that LNG will end up in Japan or India. Far from it. Both countries are wheeler dealers, swapping LNG cargoes from around the world. Japan decided it could get LNG from a closer-to-home source and so has swapped/sold the first Marcellus Cove Point shipment to someone else (we’ll tell you who when we find out). It’s likely going to be the same for the first shipment owned by India. We recently spotted the following article from India which says HALF of India’s U.S. contracted LNG–from both Cheniere Energy along the Louisiana Gulf Coast, and from Dominion’s Cove Point facility–will NOT end up going to India but instead has already been swapped or sold, at least for the first year…

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