Faster, cheaper US LNG

Expansion of the Panama Canal will be a boon for American exporters once Asian demand picks up

The Panama Canal has long played a central role in global commodity trading but its recent expansion is changing the dynamic in the liquefied natural gas market, letting sizeable cargoes of cheap US gas to reach Asia-Pacific, where buyers have been paying premium prices for imported gas with little hope of diversity. The first LNG tanker, a Shell ship, transited the expanded Panama Canal in late July, carrying gas from Cheniere Energy's Sabine Pass export facility on the US Gulf Coast. Although a few teething troubles marred the expanded canal's start-up-including a minor collision by one vessel with one of the side walls-the wider route is a milestone for the LNG business. It is a spot of g