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U.S. natural oil retailers are preparing for a new revenue stream in Europe’s lower supply and rising global prices – although Biden officials say the goal remains to “move away” from oil.
It reflects a major shift in the U.S. oil-free foreign exchange market, which last year was weakened by a pandemic and doubts about the future of gas in a low-carbon country.
“Yes, that’s a good thing for American LNG,” Charif Souki, chairman of Tellurian LNG – who hopes to build a new $ 15bn plant on the US Gulf coast – told the Financial Times, about rising global prices. “It depends only on whether the construction can be built in the US or not.”
The researchers say that as manufacturers become more dependent on the future of LNG, the new infrastructure will make the US the world’s second-largest oil retailer, after Australia.
“Even before the plague. . . it looks like we would have seen the last North American LNG FIDs, ”said Amber McCullagh, director at Envisus, describing the final decision to build export homes.
McCullagh now expects that five new projects, in addition to existing facilities, will be rolled out over the next two to three years. Export to US LNG could double if all came online about 20bn cubic feet per day, compared to about 10bn cf / d in the first half of this year.
But the new power will not be coming soon to bridge the gap in Europe and avoid potential shortcomings. this summer, Amos Amchchinin, spokesman for the Amos Department of Energy, recently said he was putting “they are in danger“.
The US government, which has long claimed that US exporters are due to its geostrategic alternatives to Russia’s imports, is contributing to the rise in Europe in the next few years – at least until the transition to clean oil ends.
“We need to keep an eye out for the next winter and the winter afterwards, to make sure that, while we are just looking at energy change, we are meeting today’s needs,” Hochstein, a former employee of Tellurian, told FT.
The current crisis “reflects the concern we have had for many years around Europe’s supply chain,” Hochstein said.
But he said the main goal of Biden’s management was to reduce the demand for natural gas while pushing down energy.
“We are confident that in the next few years the product is reliable and affordable, while at the same time accelerating the transition,” Hochstein said. “That’s a hard way to connect,” he said.
Any changes in the demand for electricity take place over a long period of time, LNG manufacturers say fears of shortages now indicate the need for more American gas in global markets.
Matt Schatzman, chief executive of NextDecade, which hopes to approve a new megaproject export project in Texas this year, said “markets in Europe and around the world are making sure LNG calls continue to be available for offers” without new jobs. NextDecade says it will catch up and inhale more air from its plant.
Mike Sabel, director of Venture Global, a developer, said this, adding that US LNG “will be critical to meeting these needs and bringing power to Europe and beyond”. Venture Global, which recently signed a major oil supply agreement in Poland, is setting up one factory in Louisiana and hopes to approve another this year.
Researchers remain cautious, however, arguing that despite the global economic downturn today, economists and consumers must remain willing to repay the demand for LNG – which requires huge sums of money – could go a long way in the world seeking to burn less oil.
“At first the US LNG did not look so good. . . but it is not easy to explain in detail, ”said Alex Munton, an electrical engineering researcher Wood Mackenzie.
“People and their ideas are trying to get them to not put a 20-year contract in their books. They should sell to investors who say: ‘What are you doing? You must have started to wind up. ‘ ”
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