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The first cargo of liquefied natural gas has set sail from a $15 billion Texas export terminal, amplifying America’s growing influence on the global market for the fuel.
LNG Jurojin departed Freeport LNG Development LP’s facility on Tuesday, according to a statement from the company, making the terminal the fifth to ship super-chilled gas from U.S. shale fields. Royal Dutch Shell Plc will take the first two deliveries from Freeport, according to a person familiar with the matter, though Jurojin’s destination isn’t clear.
Since the first U.S. LNG export terminal began operating in Louisiana in 2016, the nation has become the world’s third-largest supplier of the fuel, sending gas to buyers as distant as Japan. The startup of Freeport has provided a key outlet for Texas production, helping to boost gas prices from 1990s-era seasonal lows.
America may surpass Qatar and Australia to become the biggest exporter by 2025, according to Morgan Stanley. But a global glut is threatening the derail the next wave of U.S. LNG projects, while trade tensions have thwarted developers’ efforts to sign long-term contracts with Chinese buyers.
Freeport is seeking to build four LNG production units, or trains, with a capacity of more than 20 million tons per year, most of which is contracted under 20-year supply agreements. Train 1 was previously slated to begin production in the fourth quarter of 2018, but was delayed amid contractor snags.
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