The global liquefied natural gas (LNG) supply glut, exposure to European pipeline gas price risk and Asian gas price controls make it difficult for U.S. export project developers to sign long-term deals indexed to Henry Hub prices, according to an industry executive.

Potential customers are “looking at a current price scenario of $4.00-5.00/MMBtu and we’re trying to sell something significantly more expensive that has a 20-year term with it; it’s a tough sell in this market,” said Magnolia LNG commercial director Vince Morrissette. He spoke Tuesday at the LDC Natural Gas Forum in San Antonio.

New York City-based Glenfarne Group LLC in June acquired the 8.8 million metric ton/year (mmty) Magnolia project near Lake Charles, LA, from Australia’s Liquefied Natural Gas Ltd....