Cheap Gas Makes U.S. Only Place Where Export Makes Sense

While plunging prices tied to oil have derailed natural gas export projects from Australia to Africa, U.S. plans to build new terminals are getting a boost from a pricing system that charges a set fee to liquefy and ship the gas.

The U.S. model is based on how much gas is bought, not on the price of Brent, the global crude oil benchmark. Linking the price of liquefied gas, or LNG, made sense when Brent was above $100 a barrel. Now, it’s priced at less than $50 after losing more than half its value in six months.