Time Ticking on US LNG Export Window of Opportunity
“U.S. LNG can fill in the medium-term gap for demand and provide optionality for LNG buyers’ portfolio,” said Mohanty.
In the long-term, however, supply competition will heat up as LNG export projects come online around the world. U.S. LNG export projects could come under stress from the growth of other gas-based industries in the United States. The United States’ distance to market – and perception by foreign buyers in a slow LNG export facility permitting process – could also work against U.S. LNG export projects. Long-term LNG demand also faces risks from the potential reconstruction of Japanese nuclear power capacity.
Buyer interest in LNG works in phases.
“If you look three or four years back, everyone wanted a piece of Australia LNG, the new thing on the block. However, interest has waned as buyers move onto the next new thing.”
In this case, it’s U.S. LNG; however, this phase also will come to an end.
“Key buyers want a variety in their LNG supply portfolios,” Mohanty said. “The overall conclusion is, time is of the essence for U.S. LNG export projects.”
DOE: Job is to Make ‘Good Policy Decisions’ on LNG Export Terminals
When Chevron Corp. submitted an application for the gravity-based Port Pelican regasification project in the late 1990s/early 2000s, it was assumed that an onshore regasification facility would never receive a permit since no new refinery capacity had been built in years, said Christopher A. Smith, principal deputy assistant secretary with U.S. Department of Energy (DOE).
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