Annova LNG signed a precedent agreement with Valley Crossing Pipeline LLC (VCP) on Jan. 22, providing transportation for Annova LNG’s total natural gas requirements at its 6.5 mtpa LNG facility in Brownsville, Texas.
The terms of the trade deal imply an absolutely massive increase in Chinese imports of U.S. energy, and if this actually comes to pass, it will have serious disruptive effects across global markets.
Quantities were not specified in the accord and analysts were unclear how quota sales will work.
Attorneys general urge PHMSA to withdraw the proposal pending safety studies.
Drillers in pursuit of more-valued oil and NGL have created a glut of gas, despite higher exports of LNG.
Agreement supports Aramco’s long-term natural gas strategy.
Over the past couple of months, Singaporean gas importer Pavilion Energy canceled the loading of a U.S. LNG cargo and some Chinese companies were offering to resell cargoes.