GDF Suez reveals deal to take US liquefied gas to Taiwan
March 29, 2014, 12:09 am TWN
PARIS -- French gas group GDF Suez revealed on Friday a giant deal, the first of its kind, to ship liquefied natural gas (LNG) from the United States to supply Taiwan.
The contract, of undisclosed value, will include natural gas from shale production, and is a sign of huge changes in global energy markets driven largely by the shale energy revolution in North America.
GDF Suez said it had signed an agreement to sell 800,000 tons of LNG a year for 20 years from 2018 to Taiwanese company CPC.
The gas would come from the Cameron LNG liquefaction plant in Louisiana state in the southern United States, fed by natural gas from normal and also from shale reserves.
Company vice president Jean-Marie Dauger, responsible for global gas operations, said in a statement: "This sales agreement, the first of its kind, will contribute to export natural gas — including shale gas — produced in the US to the global LNG market and will contribute to diversification and security of energy supply.
"It will also be a part of GDF Suez ambition to deepen its role in the Asia-Pacific region and to expand long term supply into a region where LNG demand for the future is high.
Taiwan to Import 12.5 Million Tons of LNG 2014
"We are pleased to be among the first movers in the export of shale gas from the US and to enter into a long term relationship with CPC and to contribute to the security of energy supply also in Asia."
The LNG market in Taiwan is one of the biggest in the world. Imports are expected to exceed 12.5 million tons this year, about the same as in 2013.
Asia is seen as offering great potential to exporters of gas. Prices there are more than 50.0 percent higher than in Europe and are twice or even three times the level in the United States.
Asian demand has been boosted by the halting of production from nuclear energy plants in Japan and by economic growth which drives up demand for energy.
Liquefied natural gas is gas which has been cooled to very low temperatures so that it becomes liquefied for transportation in tanker ships.
On arrival at its destination, most of the liquid is then turned back into gas for injection into local gas distribution networks.
GDF Suez, the third-biggest importer of LNG, is a leading operator on this market, operating a fleet of 14 tankers and transporting 16 million tons of LNG per year.