Page 4 - GLNG Week 12 2022

GLNG COMMENTARY GLNG

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

POLICY THE US continues its push to send more LNG to official from the administration of US President
Europe as the European Union works to urgently Joe Biden who briefed reporters on the plan
WHAT: reduce its dependence on Russian gas. Over the on March 25 could not say how much of the
The US has agreed to past few days, the US agreed to supply an addi- additional volumes would be provided by US
supply additional LNG tional 15bn cubic metres of LNG to the EU this suppliers versus suppliers in Asia or elsewhere,
to Europe and is taking year. And US regulators said they would delay according to Bloomberg.
steps to expedite this. the implementation of proposed requirements This comes amid ongoing competition for
to consider the climate impact of new LNG and LNG cargoes between buyers in Europe and
WHY: other gas projects amid concerns that the new Asia, which had already been playing out over
The country is working rules would affect efforts to send more gas to the winter, before Russia’s invasion of Ukraine
more closely with the Europe. triggered an urgent rethink of EU energy sup-
EU to help reduce its The US’ ability to significantly ramp up ply policy. The US recently became the largest
reliance on Russian gas. exports remains limited, with all fully opera- supplier of LNG to Europe, with shipments
tional plants in the country running at capacity, doubling to 4.4 bcm in January and staying at
WHAT NEXT: but those LNG producers already close to final similar levels in February.
Proposed requirements investment decisions (FIDs) on new projects However, the latest US liquefaction capac-
to consider the climate could benefit from the latest developments. It ity additions – Venture Global LNG’s Cal-
impact of new US LNG has also been reported that US LNG suppliers casieu Pass plant and Train 6 at Cheniere
projects will be delayed. will meet German buyers in Berlin at the end Energy’s Sabine Pass terminal – have already
of March in a bid to expedite new supply deals. been brought online. While they will continue
If any such deals are struck, more US LNG pro- ramping up output this year, beyond this no
ducers could find themselves ready to take FID new projects are expected to start up on the Gulf
on new capacity sooner rather than later. Coast until at least 2024.
The US Department of Energy (DoE)
Additional supply authorised additional exports from Cheniere’s
It was not immediately clear where the addi- two Gulf Coast terminals to countries with
tional 15 bcm of gas that the US has agreed to which the US does not have a free-trade agree-
supply to Europe would come from. Indeed, ment (FTA), noting that this included all of
it may not come from the US at all. A senior Europe. (See GLNG Week 11) However, while

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