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As low as it gets: cash costs of US LNG

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Report summary

On a full life cycle cost basis US LNG linked to northwest European spot prices will struggle to find margin at spreads above Henry Hub of less than $5.00/mmbtu taking into account the full costs of liquefaction shipping and regasification. But once operational the plant economics change. Sunk costs become irrelevant to decision making and US LNG will flow where offtakers can find margin based on cash costs alone. In thinking about US export potential in an oversupplied market therefore cash costs are key.

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    As low as it gets: cash costs of US LNG

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This report includes 3 images and tables including:

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  • Sunk vs. cash costs of US LNG (FOB)*
  • Cash costs of Gulf Coast FOB: SPA vs. LTA contracts*
  • Delta between SPA and LTA offtakers cash costs

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