American LNG companies, including Shell, ExxonMobil, Tellurian and Cheniere presented their plans for the European market at a recent industry event in Budapest, during which Tellurian promised to undercut competition on LNG prices.
Tellurian and Cheniere are likely to take part in an international tender announced by DEPA, the Public Gas Corporation, for LNG shipments to the Greek market between 2018 and 2020.
LNG demand has increased by 12 percent over the past year, according to Tellurian deputy chief Charif Souki, who noted that lower price levels over the past two years had a good side as they helped the sector’s development.
Souki explained that, besides development of an LNG production terminal in Louisiana, a project expected to commence next year, Tellurian is striving to capitalize on lower production costs to offer more competitive LNG prices.
Houston-based Tellurian recently reached a deal to buy gassy Haynesville Shale acreage near its planned natural gas export facility in Louisiana. The company plans to develop a pipeline link from the Haynesville field to the export facility and eliminate transportation costs.
According to Souki, this development will enable Tellurian to offer LNG at a price level 3 dollars lower than the Cheniere rate.
Just weeks ago, Tellurian was identified as a previously unnamed US firm interested in entering a consortium to develop a floating LNG terminal (FSRU) in Alexandroupoli, northeastern Greece.