The first liquefied natural gas (LNG) vessel from the lower 48 US states is on its way to China, according to recent reports. This is the latest indication that the expanded Panama Canal is allowing US exports to reach the world’s top LNG buyers in Asia.
Royal Dutch Shell’s Maran Gas Apollonia loaded up with gas at Cheniere Energy Inc.’s Sabine Pass LNG export plant in Louisiana, passed through the canal early last week and was moving northwest up the west coast of Mexico by Friday, July 29th.
LNG experts at energy data provider Genscape confirmed the ship’s destination was China, but said that could change. China’s fast-growing demand for gas, to help alleviate high levels of pollution from burning coal, has outstripped its domestic supply since 2007, according to US Energy Information Administration data.
The Panama Canal shaves distances between export plants dotted along the Gulf of Mexico and Asia to 9000 miles (14,484 km) from 16,000 miles, allowing US producers to better compete in one of the world’s biggest gas consuming markets.