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U.S. LNG for China arrives via Panama canal

Staff Writer |
The first shipment of liquefied natural gas from the lower 48 U.S. states to China arrived this week, thanks to the recently expanded Panama Canal's easing access to the robust Asian market for U.S. gas exporters.

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The shipment was chartered by Royal Dutch Shell, the company confirmed to The Wall Street Journal.

The cargo, from the Sabine Pass export facility in the U.S. Gulf of Mexico, was delivered to the Yantian Port on Monday in southern China and was purchased by China National Offshore Oil Corp. as part of a long-term contract, according to S&P Global Platts.

U.S. LNG, which is usually transported on large ships that can't fit in the older Panama Canal locks, hasn't been able to compete in Asia.

The new locks, which opened in June and can accommodate larger ships, mark a significant moment for U.S. exporters.

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