U.S. records highest ever LNG exports in August — courtesy of ethical Canadian energy

Subhead:Economists say U.S. LNG exports to Europe are typically priced higher than Canadian gas sold to U.S. producers.#

 

Despite criticisms that Canada failed to export natural gas to Europe, the Polish ambassador to Canada stated that Canadian gas reaches Europe via the U.S., incurring a markup.

“Remember; some of the LNG that’s coming from the United States to Europe, to Poland, is also Canadian … but it’s being sold for a much higher price,” Witold Dzielski told CBC News when asked about Polish demand for Canadian LNG.

Europe remains the top destination for U.S. LNG exports, receiving 6.16 million tons (66% of total) in August, up from 5.25 million tons (58%) in July, according to LSEG data.

Jamie Heard of Tourmaline, a Canadian natural gas producer, told the National Post that “nearly all” of their U.S.-exported natural gas has ended up in Europe. He said Cheniere Energy, the U.S. exporter of Tourmaline’s product, is earning a “fair return” from their arrangement.

LNG exports to Europe are typically priced higher than Canadian gas sold to U.S. producers, confirmed University of Alberta energy economist Andrew Leach.

Author: contributor

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