Gazprom sees U.S. LNG costing Europe more than spot market

Current prices on European spot hubs are in the range of $160 per 1,000 cubic meters.

Current prices on European spot hubs are in the range of $160 per 1,000 cubic meters.

Reuters
First delivery of U.S. LNG is expected to be made at the end of February

The liquefied natural gas (LNG) that the United States is expected to start exporting to Europe in the first quarter (end of February-start of March) will cost Europe more than gas purchased on the spot market, Gazprom said in a presentation for a series of meetings with investors that will begin in with an Investor Day in New York on Jan. 1.

"Total expenses on American LNG in 2016 will be higher than prices at European hubs. The price includes transportation from the Henry Hub to Lack Charles in Louisiana, liquefaction, marine transport and regasification in the UK," the Russian gas giant said in its presentation.

Current prices on European spot hubs are in the range of $160 per 1,000 cubic meters.

The first delivery of U.S. LNG from the Sabine Pass plant in Louisiana is expected to be made at the end of February or beginning of March. BG Group has contracted 3.5 million tonnes of the first train's annual capacity of 4.5 million tonnes of LNG.

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