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    WSJ: Don't Be Surprised if U.S. Gas Export Profits Leak Away

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Summary

The actual cost of delivering U.S. gas overseas would be far greater than the cost of $3 per BTU. Consultancy PFC Energy breaks down the figures. Upwards price adjustments include liquefaction, cost to the facility operator of gas lost during liquefaction, and long-term gas prices.

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WSJ: Don't Be Surprised if U.S. Gas Export Profits Leak Away

The latest free lunch being peddled involves exporting U.S. natural gas. Don't be surprised if it evaporates.

Headline U.S. gas futures bounce around $3 per million British thermal units. Meanwhile, Japan imports liquefied natural gas, or LNG, for about $17. That spread is why companies such as Cheniere Energy are racing to build plants to export U.S. gas.

But if "$3 in, $17 out" sounds too good to be true, that is because it is. While the economics of exports can make sense, they are no slam-dunk.  MORE

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