Tellurian’s plans on making US LNG more accessible for Europe

Dr Anita Orban's picture
Dr Anita Orban, Vice President, Tellurian
Comments: 0

With the demand for gas ever increasing in Europe, the market is looking for gas via a variety of import options, pipeline and LNG. Following on from recent political discussions, Europe has pledged to import more US LNG in a bid to diversify imports which suits America’s desire to seek new markets in order to satisfy the expanding production of the fuel.

Ahead of 2018’s EAGC | CEE taking place 7-9 November in Berlin, Gastech Insights spoke with CEE Gas Conference speaker Anita Orban, Vice President, Tellurian to hear more about the opportunities in the region and how Tellurian plans to further develop the market.

Gastech Insights: What are the opportunities of the LNG market for the CSEE region and how will the region reach its full potential?

Anita Orban: According to the European Commission’s plans, by 2020 every European Member State will have access to the global LNG market. This will greatly contribute to Europe’s goal to enhance energy security and competition. The recent examples of Poland and Lithuania as new LNG buyers have demonstrated the beneficial impact of LNG on both domestic markets by creating competition and as a result lower prices and leading to the development of brand new industries in the region, just look at the example of the over 1500 LNG trucks loaded in Swinoujsce last year, as a result, making the Polish LNG terminal the largest reloading port in Europe.

What else can speak any better for the success of LNG in Poland than the 60% utilization rate of the terminal while the European average is in the 20 percentiles?

Gastech Insights: As US LNG exports continue to grow, how will this impact the traditional buyers of Russian gas?

Anita Orban: The first wave of US LNG export is 70mts of LNG (~105bcma). We expect that the second wave of US LNG will be even bigger and about 100mts of additional liquefaction capacity could be added. This would make the US the largest LNG supplier in the world. US LNG already has a direct and indirect impact on the European gas market both in terms of physical deliveries as well as price-wise. European LNG demand grew by 16% and 13% of the US LNG cargoes landed in Europe in 2017.

The LNG market is heading towards commoditisation, which means more spot and short-term transactions, more liquidity and transparent pricing. This will inevitably impact every corner of the European market.

Gastech Insights: What are the benefits of a better integrated gas market between Ukraine and its EU neighbours?

Anita Orban: Ukraine is a large gas market and the country is also well endowed in gas infrastructure – pipelines, as well as, storage. Market integration increases cross-border trade and enhances competition. Both parties are to gain from it.

Gastech Insights: Can you tell us more about Tellurian’s plans in Europe to help further develop the market?

Anita Orban: Tellurian has developed a new business model for U.S. projects that addresses both customer risk and development risk while ensuring long-term supply and transportation capacity. Tellurian’s model offers customers equity in the interconnected components of the LNG development chain – an upstream position in the Haynesville, pipeline investments in Texas and Louisiana and the 27.6 mtpa Driftwood liquefaction facility near Lake Charles, Louisiana. This model reduces construction risk, basin risk and basis risk.

Via the above Tellurian builds an integrated, low-cost model. We strongly believe in the commoditization of LNG and that successful projects need to be low-cost on the water. Our model will make US LNG more accessible to European customers.

Gastech Insights: You are speaking at this year’s CEE Gas Conference at EAGC in Berlin, why should industry players attend the event?

Anita Orban: The Central European region offers a potential new growth market for natural gas and a new market for LNG. The CEE Gas Conference attracts key decision makers to debate the most important issues onstage and during coffee breaks. I look forward to hearing the latest developments in the region and meet industry colleagues.

If you would like to hear more from Ms Orban, register to attend EAGC | CEE, 7-9 November in Berlin to hear the panel discussion on ‘Seizing the LNG opportunity’. Do not miss out and book your place today.