"The secret of success is to know something nobody else knows"

Aristotle Onassis

Meeting: October 8, 2015: Much talked about American LNG exports: a likely scenario for the European gas markets?

 

An interactive discussion of the Brussels Energy Club addressed the topic of:


"Much talked about American LNG exports: a likely scenario for the European gas markets?"

 

And took place on Thursday 8 October, 4.30 — 8pm @ TUSIAD Avenue des Gaulois, 13, Brussels 1040

 

With special guest speaker:

Francesco StipoFrancesco Stipo, PhD

 

President Emeritus, Club of Rome, United States of America Association

Member of Bretton Woods Committee and of the Atlantic Council            

 

 

Background

Many of us "energy experts" are succumbing to the view that new techniques of oil and natural gas extraction in the United States have released large volumes of fossil fuels and are transforming the U.S. from an energy importer into an energy exporting country. In terms of booming US gas production, it is envisaged that part of the stock will be consumed domestically, part will be exported to Mexico by pipeline, whilst some volumes are expected to be exported to other countries by sea in the form of LNG. Maritime shipments of natural gas require a double infrastructure: liquefaction plants to reduce the volume of natural gas and regasification terminals to transform the LNG back to gas and distribute it through the pipeline system.

Given that the United States has traditionally been a gas importer, the country now needs to build new liquefaction plants in order to export its gas surplus. As it currently stands (in 2015), there is one liquefaction plant on-stream in the United States. However, five new plants have received FERC authorization and several others have filed petitions with the FERC and with the Department of Energy to export LNG to non-FTA countries. By comparison, in Europe there are 21 on-stream storage and regasification terminals (including 2 terminals in Turkey), a further four are under construction and there are currently plans to build eight more.

The volume of future U.S. LNG exports to Europe will depend on a combination of factors, both political and economic. Europe needs to diversify its gas supplies and increase its infrastructure connectivity to achieve energy security. The price of American LNG is highly competitive in comparison with other LNG producers but it is generally more expensive than pipeline gas (such as gas deliveries from Russia to Germany through the Nord Stream pipeline). However, pipeline gas is not sufficient to cover all European energy demand.  The next 5 years will present excellent opportunities for European companies to invest in American liquefaction plants and to enter into long-term supply contracts with US LNG exporters because the oil and gas industry in the United States will need capital and foreign buyers to build its new energy infrastructure. Will such factors ultimately and finally foresee American LNG supplies reaching European shores?  Is there scope here for the establishment of a genuine trans-Atlantic LNG market?  While the jury might still be out on these questions, participants in the next BREC members meeting led by Francesco Stipo will surely be enlightened by many new insights about this exciting subject. We look forward to welcoming you to this highly stimulating BREC meeting on October 8.    

 

Program October 8, 2015: 16.30 — 20.00:

  • Arrival of members and guests leading into welcome cocktail   
  • Welcoming remarks by Dr Bahadir Kaleagasi, Chairman, Brussels Energy Club
  • Setting out the debate by Dr Marat Terterov, Executive Director, Brussels Energy Club
  • Presentation by Dr Francesco Stipo, President Emeritus, Club of Rome, United States of America Association  
  • Reflections and remarks by members and guests of the Brussels Energy Club, leading into Q/A session (NB: all discussions during the session will take place under the Chatham House Rule).
  • Buffet supper reception and networking opportunities with the speaker

 

Speaker information

Francesco Stipo is a lawyer, author and expert in international affairs. Dr. Stipo is the President Emeritus of the United States Association of the Club of Rome (www.usacor.org), the American branch of a global think tank. He is the author of several books and articles on global economic issues and is frequently invited to speak to international organizations, universities and think tanks. He is a member of the Atlantic Council of the United States and the National Press Club in Washington D.C. In 2012 he was elected as a Fellow of the World Academy of Art and Science for his contribution in the field of global governance. In 2014 he was invited to join the Bretton Woods Committee, an organization composed of leading bankers and experts who support international financial institutions.

Born in Italy in 1973, Dr Stipo is a naturalized United States citizen. He holds a Ph.D. in International Law and a Masters Degree in Comparative Law from the University of Miami. Since 1999 Dr Stipo has worked as an international legal advisor specializing in energy transactions and company acquisitions. Dr Stipo assists European companies in negotiating sale and purchase agreements with American LNG suppliers and gives advice on investments in U.S. liquefaction plants. He holds substantial international experience in the field of global LNG.

 

Further information

Participation in the interactive discussion at TUSIAD venue will be free of charge for members and guests of the Brussels Energy Club. For more information please contact Martin Minarik on industry@brusselsenergyclub.org and/or Ben McPherson on research@brusselsenergyclub.org, or visit the contacts section of our website.

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