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