US to export LNG by the end of the year

The US will start exporting liquefied natural gas by the end of the year or early next year, a top ranking energy official from the US told Gulf News.

Amos Hochstein, special envoy and coordinator for international energy affairs at the US department of state said the government has already issued several export approvals for the creation of export terminals.

“By the end of 2015 and early 2016, we are going to see the first export of liquefied natural gas heading towards Asia specially India and Japan. We expect that to grow over the next few years,” said Hochstein.

He said the US has transitioned from a major importer of LNG to a country which imports little.

“We are producing our own natural gas to support most of our demand.”

On falling oil prices, he said the US government has no role in it. “I don’t think anyone in the government or Gulf countries are blaming the United States.”

“Anyone who understands the energy market recognises that the shale oil and general oil and gas production is private and part of the free market. If the prices continue to fall and the production is no longer viable for producers to continue, it will affect their decision. It is an entirely market based approach. The US government does not interfere in the market.”

He praised the resilience of the energy sector in the US and said it will continue to be so. “The sector is going to become more and more efficient and effective and we will have to see how the market affects the production levels.”

The UAE this week has ruled out any cut in oil output to stabilise oil prices, and placed the onus to cut production on the countries which are producing the most expensive oil.

“Everyone needs to make measures but those who are producing the most expensive oil, rationale and rules of the market say they should be the first to pull or reduce the production,” said the Energy Minister Suhail Mohammad Al Mazroui hinting at US shale production at an energy summit in Abu Dhabi last week.

Meanwhile, Al Mazroui said the country is leaning towards more environmentally viable solutions and focusing on diversity in the energy sector. “Diversity led us to thinking about efficiency. We started this initiative Masdar. This is the beginning of a new era to move away from hydrocarbons,” he said at the World Future Energy Summit on Monday.

He said the nuclear energy will contribute about 24 per cent of the total electricity demand by 2020. “Nuclear energy is very much part of our solution. It is safe and will meet our energy demand. The project site at Barakah is carefully chosen and is protected from any kind of problems like tsunami or tectonic movements.”