Page 4 - FSUOGM Week 13 2022
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FSUOGM                                        COMMENTARY                                            FSUOGM































       US steps up efforts to supply





       more LNG to Europe






       The US has taken further steps to help send more LNG to Europe to

       replace Russian gas, but its capacity to significantly ramp up exports

       of the fuel remains limited


        EUROPE           THE US continues its push to send more LNG to  may not come from the US at all. A senior offi-
                         Europe as the European Union works to urgently  cial from the administration of US President
       WHAT:             reduce its dependence on Russian gas. Over the  Joe Biden who briefed reporters on the plan
       The US has agreed to   past few days, the US agreed to supply an addi-  on March 25 could not say how much of the
       supply additional LNG   tional 15bn cubic metres of LNG to the EU this  additional volumes would be provided by US
       to Europe and is taking   year. And US regulators said they would delay  suppliers versus suppliers in Asia or elsewhere,
       steps to expedite this.  the implementation of proposed requirements  according to Bloomberg.
                         to consider the climate impact of new LNG and   This comes amid ongoing competition for
       WHY:              other gas projects amid concerns that the new  LNG cargoes between buyers in Europe and
       The country is working   rules would affect efforts to send more gas to  Asia, which had already been playing out over
       more closely with the   Europe.                        the winter, before Russia’s invasion of Ukraine
       EU to help reduce its   The US’ ability to significantly ramp up  triggered an urgent rethink of EU energy sup-
       reliance on Russian gas.  exports remains limited, with all fully opera-  ply policy. The US recently became the largest
                         tional plants in the country running at capacity,  supplier of LNG to Europe, with shipments dou-
       WHAT NEXT:        but those LNG producers already close to final  bling to 4.4 bcm in January and staying at similar
       Proposed requirements   investment decisions (FIDs) on new projects  levels in February.
       to consider the climate   could benefit from the latest developments. It   However, the latest US liquefaction capacity
       impact of new US LNG   has also been reported that US LNG suppliers  additions – Venture Global LNG’s Calcasieu Pass
       projects will be delayed.  will meet German buyers in Berlin at the end of  plant and Train 6 at Cheniere Energy’s Sabine
                         March in a bid to expedite new supply deals. If  Pass terminal – have already been brought
                         any such deals are struck, more US LNG produc-  online. While they will continue ramping up
                         ers could find themselves ready to take FID on  output this year, beyond this no new projects are
                         new capacity sooner rather than later.  expected to start up on the Gulf Coast until at
                                                              least 2024.
                         Additional supply                      The US Department of Energy (DoE) author-
                         It was not immediately clear where the addi-  ised additional exports from Cheniere’s two
                         tional 15 bcm of gas that the US has agreed to  Gulf Coast terminals to countries with which
                         supply to Europe would come from. Indeed, it  the US does not have a free-trade agreement



       P4                                       www. NEWSBASE .com                         Week 13   30•March•2022
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