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A liquified natural gas plant on the Chesapeake Bay in Cove Point. Adding the cost of liquefaction, transport and regasification to export LNG means the margin from lower North American prices nearly disappears in Europe.
A liquified natural gas plant on the Chesapeake Bay in Cove Point. Adding the cost of liquefaction, transport and regasification to export LNG means the margin from lower North American prices nearly disappears in Europe.
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Overseas exports won’t equalize natural gas prices

North America could be a key supplier of natural gas to Asia and Europe, boosting supply security, but that will not equalize global prices for the fuel, the International Energy Agency’s chief economist says.

The costs of processing the fuel in Canada and the United States, plus transportation, will mean the price differential has to remain for liquefied natural gas to be competitive in export markets, the Paris-based IEA’s Fatih Birol said on Wednesday.