Cheniere Energy Sabine Pass facility on the Gulf Coast will be the first to export liquefied natural gas (LNG) from U.S. shale fields, The Financial Times reported.
The shipment is a momentous event for energy markets, marking the arrival of the U.S. as a gas supplier to the world, according to The Financial Times.
The plunge in oil prices since the summer of 2014 has dragged down the value of LNG, which is often sold on crude-linked contracts. The economics of shipping gas from the U.S. were compelling two years ago, but are now marginal.
Even so, U.S. LNG exports are likely to have a significant impact, holding down energy costs for consumers in Europe, Latin America and Asia, the report notes. They will also provide tough competition for anyone hoping to build rival LNG plants, such as the proposed projects in east Africa, the west of Canada, or Russia. By the end of the decade, the U.S. is likely to be the world's third-largest exporter of LNG, after Qatar and Australia, according to the report.
"There is an awful lot of LNG sloshing around the world at the moment, with even more to come," says Frank Harris of Wood Mackenzie, a consultancy.
"And that is putting downward pressure on prices," he added.
The price of LNG delivered in north-east Asia, including Japan and South Korea, the world's two largest markets, has fallen along with oil. It has dropped to about $6.65 per million British thermal units, just a third of its price of almost $19 per mBTU two years ago, according to Argus, the information service.
Since 2013, most of the new LNG projects launched worldwide have been in the U.S. However, the deteriorating economics make it unlikely that any new plants will be approved for a while.
As reported earlier, the U.S. hopes to eventually make strides into Russia's natural gas market in Europe, taking away market share from a politically volatile neighbor.
Former Soviet state Lithuania has already signed a non-binding agreement to purchase LNG from the United States this year.