teekay.com
A tanker from Louisiana loaded with U.S. natural gas is en route to Portugal, the first shipment in a trade relationship that could shake up the European market, according to Wall Street Journal.
The 970-foot long Creole Spirit, carrying liquefied natural gas, is expected to arrive by the end of April, according to shipping data and people familiar with the matter, WSJ reported.
In Europe, American gas will add to a swell in supply in a crowded market long dominated by Russia. Analysts predict that the arrival of U.S. gas could trigger a price war, leading to lower prices for consumers that could act as a shot in the arm for the struggling European economy.
Read alsoCheniere Energy's shipment turns U.S. into gas exporter“It’s the start of the price war between U.S. LNG and pipeline gas,” said Thierry Bros, an analyst at Societe Generale.
Portugal’s energy company Galp Energia has bought the first European cargo from Cheniere’s Sabine Pass facility, according to a person familiar with the transaction. The ship is estimated to arrive at the Port of Sines in Portugal on April 26, according to data from the port.
Europe is expected to be a big market for American gas. The shale-gas boom has transformed the energy landscape in the U.S., and the country is now expected to become a net gas exporter in 2017.
Read alsoNaftogaz CEO: Nord Stream-2 Russia’s "Trojan Horse" for EUCheniere has signed long-term contracts with a number of European gas companies, including U.K.’s BG Group, which was acquired earlier this year by Royal Dutch Shell PLC, and Spain’s Gas Natural.
In Europe, U.S. suppliers will square off with Russia, which currently supplies about a third of the continent’s gas via pipeline.