U.S. shipments of LNG are expected to fall to their lowest level in six months in April, after a leading U.S. supplier shut units for maintenance at a time when a glut of supply has driven some worldwide prices to near three-year lows.
Lost deal for $800 million deals another to struggling Japanese company.
Developing the Pacific island nation’s gas reserves is seen as crucial to its economy as LNG is its biggest export earner, while demand for the fuel is surging globally.
KBR Inc. said on April 8 it has selected Baker Hughes, a GE company, as part of the ongoing development of KBR’s standardized midscale LNG design.
Deal that begins in 2025 covers 1 mtpa and reflects expansion of Pluto LNG facility.
It is believed to be the first time a Japanese buyer is using a coal-based pricing index in an LNG contract, industry observers said.