American liquefied natural gas (LNG) exporter heavyweight Cheniere Energy is "extremely focused" on the Asia-Pacific region, the company's President and CEO Jack Fusco said Wednesday at CERAWeek 2018 by IHS Markit in Houston, Texas.
Two years ago during the CERAWeek 2016 energy conference Cheniere showed the audience a video clip of its first LNG cargo ship loading at its Sabine Pass LNG terminal in the state of Louisiana.
"The first cargo we shipped two years ago went to Brazil," Fusco said, and confirmed since then the company exported over 300 cargos to 25 different countries.
While Cheniere's LNG cargos went to countries in Latin America, Asia and Europe over the past two years, "recently, it went more to Asia, and specifically to China," Fusco said.
Once heavily dependent on coal to generate electricity, heating, and providing power for its massive industry, China is now shifting towards using natural gas.
"We see a shift in what China is trying to do -- to clean their air and to generate electricity. It's more of a social issue in China. They want and need cleaner air, and we see that shift as long-term in nature. I don't see that will change any time soon," Fusco said.
Demand for LNG in China has been "fantastic" and increased 40 percent year-over-year, the CEO said.
"I think it's gonna continue that way looking at the number of regasification terminals that are being built," he added.
He also noted that the U.K. and Western Europe struggled between natural gas and coal over the past two years.
"What we have seen early on is when we were delivering U.S. LNG to Europe, we were displacing coal. As Asia demanded more and more for the product, Europe switched back," he explained.
Gas prices have also increased in Asia more so than in Europe during that period due to higher demand.
Fusco noted that Cheniere Energy has opened offices in Beijing and Tokyo, in addition to Singapore.
"We can double the size of the company if we are successful in Asia," he concluded.
Cheniere signed a deal in February with PetroChina, a subsidiary of China National Petroleum Corporation, to begin selling about 1.2 million tons of LNG per year. While the agreement will run through 2043, the volume of the shipments will ramp up in 2023.
The company announced Monday that its first LNG cargo had sailed for India. Its 20-year deal with the Indian state-owned natural gas company GAIL India Ltd. will supply with India 3.5 million metric tons of LNG every year.
By Ovunc Kutlu in Houston
Anadolu Agency
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