Discussion about this post

User's avatar
Seb Kennedy's avatar

So much to say about this decision, but I’ll keep this brief. There’s so much new LNG supply entering the global market over the next two years from the US, Qatar, Canada and perhaps Mozambique that this pause in new approvals is essentially irrelevant: no new US LNG projects will secure long-term customers or finance in a market that’s overflowing with surplus supply. It was an easy way to make headlines that placate the climate contingent of the electorate without endangering market liquidity. CP2 is the scapegoat but Venture Global, the project developer, has trashed its own reputation by defrauding its own long-term customers and selling contractually committed cargoes into the (higher priced) spot market. Buyers will not go near CP2 without cast iron assurances that this won’t happen again, and I expect a fair few executives in the LNG space will gleefully welcome CP2’s demise. You might say VG deserved a comeuppance and Biden is doing their bidding.

All in all, it is business as usual in the LNG world.

Expand full comment
Paul's avatar

The most likely reason for suspending LNG exports is to put pressure on Texas in the border dispute because a high, if not the highest, number of LNG terminals are in Texas. This will put people out of work, causing tensions and pressure on caving in to the feds.

Biden and the rest don't give a flying eff about the climate or energy. Their empire is collapsing before their eyes and they're scrambling to keep the circus running.

Expand full comment
22 more comments...

No posts