Page 4 - GLNG Week 11 2022

GLNG COMMENTARY GLNG

US grants additional LNG export

approvals to Cheniere

The US Department of Energy has authorised additional exports from Cheniere

Energy’s two LNG terminals in a move that could benefit Europe

POLICY CHENIERE Energy, the US’ leading producer of countries are trying to act fast to help Europe
LNG, has been authorised to export additional secure alternative sources of gas.
WHAT: volumes to countries that do not have a free- “While US exporters are already exporting at
The US government has trade agreement (FTA) with the US. or near their maximum capacity, with today’s
approved additional In a March 16 announcement, the US Depart- issuances, every operating US LNG export
exports from Cheniere’s ment of Energy (DoE) said it had issued two project has approval from DoE to export its full
LNG terminals to long-term export orders to Cheniere. Under capacity to any country where not prohibited
countries that do not the orders, Cheniere’s two LNG terminals will by US law or policy,” the DoE stated. “US LNG
have a free-trade be able to export an additional 720mn cubic feet remains an important component to global
agreement with the US. (20.4mn cubic metres) per day of gas to non- energy security, and DoE remains committed
FTA countries. The DoE noted in its announce- to finding ways to help our allies and trading
WHY: ment that this includes all of Europe. partners with the energy supplies they need
US LNG is expected to This comes after the European Union while continuing to work to mitigate the impact
help Europe reduce its unveiled a plan earlier this month to reduce its of climate change.”
dependence on Russian imports of Russian gas by two-thirds within a
gas. year, in response to Russia’s invasion of Ukraine. More flexibility
US LNG was being touted as an alternative to The additional volumes Cheniere is now author-
WHAT NEXT: Russian gas even before the invasion began, ised to export to non-FTA countries equate to
Exports of US LNG are though it has also been noted that European 5.2mn tonnes per year (tpy). The approvals come
anticipated to grow by buyers will need to build additional import weeks after the company announced that Train
20% beyond current capacity in order to accommodate more cargoes. 6 at its Sabine Pass LNG terminal in Louisiana
levels by the end of this Nonetheless, LNG – especially from the had reached substantial completion. At the same
year. US given a relatively short journey across the time, it is preparing to take a final investment
Atlantic – is seen as a major beneficiary of the decision (FID) on the next phase of expansion at
EU’s pivot away from Russia. And the DoE’s the Corpus Christi LNG facility in Texas.
announcement also illustrates how other It is also worth noting that Cheniere has

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