‘America Third’ to turn down LNG supply
Let’s run the numbers for the US terminals. Their CAPEX on the liquefaction plant is a sunk investment. You cannot reduce installments just because the plant goes down. The shipping link is very similar as shipping capacity is booked for the longterm in advance and needs to be paid. If you cant find re-employment in order to cover those costs, you keep it running ad its sunk cost. Receiving capacity at the destination terminal often is booked in advance so the same dynamics apply. Remains, the price for the gas, some pipeline transport and OPEX. Don’t count on US terminals to switch off so quick. Those are complex beasts where lots of stuff can go wrong when its ramped up or down. You don’t wanna do that because you had a bad day.
