New interest in The US LNG Market as Sonatrach Goes Global

But Sonatrach’s zeal to be a global downstream and marketing player has caused it to focus renewed attention on the US LNG market, which some analysts expect to grow significantly if new re-gasification plants are built as currently planned on both coasts and in the Gulf of Mexico, including two planned for Maine. Sonatrach signed an access agreement in March 2008 to supply 2 billion cubic meters per year of LNG directly to Cove Point, MD from 2009 to 2024, and to sell an additional 1 billion cm. Sonatrach also signed three non-binding agreements in this decade to discuss supply deals at existing or planned US LNG plants in Texas and Louisiana, from which nothing materialized apparently, and a third for a plant in Freeport, TX. Sonatrach has signed access or lease deals for re-gasification facilities in Europe, obtained commercial licenses to sell gas on the Portuguese and Spanish retail markets, and is gaining downstream footing in Africa and South America (Argentina, Peru). Likewise, Sonatrach currently operates eight LNG tankers, and has arrangements with Japanese partners for three more currently under construction.