LNG

Technip Energies’ latest full notice to proceed on Caturus’ 9.5 mtpa Commonwealth LNG export terminal marks another milestone for the U.S. Gulf Coast LNG buildout, even if the terminal is not expected to ship its first cargo before 2029.

Commonwealth LNG has been granted a regulatory extension of four years to complete its 9.5 mtpa Louisiana export terminal, with the Federal Energy Regulatory Commission (FERC) approving a new construction deadline of 31 December 2031.

Commonwealth LNG is progressing towards a final investment decision (FID) following final approval from the US Department of Energy (DOE) to export up to 1.21 Bcf/d of LNG to non-free trade agreement (FTA) countries. With all permits now in hand, Kimmeridge is gearing up for an FID in Q3-2025.

The founder and executive Chairman of the Commonwealth LNG project in Louisiana, Paul Varello, has announced his retirement while also selling control of his company to the New York-based Kimmeridge asset management firm.

EQT Corp., the leading US natural gas producer in the Appalachian shale basins, is merging in a combination worth over $23 billion with Equitrans Midstream, the operator of natural gas gathering systems and the owner of the key Mountain Valley Pipeline.

EQT Corp., the leading US natural gas producer in the Appalachian shale basins, reported solid annual net income even as earnings dropped for the fourth quarter and has now signed three LNG tolling agreements on the Gulf Coast and was pursuing sales contracts.

The American Gas Association (AGA), the industry group representing over 200 utility companies delivering natural gas throughout the US, said the Administration of President Joe Biden has moved to block pending approvals of liquid natural gas export permits to please climate activists in an election year.

“While hailed as a victory by climate advocacy groups, the decision could ultimately increase total global emissions, with US LNG having 50 percent lower supply chain emissions than Russian natural gas,” said the AGA.

“Natural gas has been the single biggest factor in reducing US greenhouse-gas emissions and could have the same effect around the world,” explained the AGA.

AGA President and Chief Executive Karen Harbert said the future shortages of American natural gas on global markets would result in higher energy costs for US allies, cause energy shortages in the developing world and would please other gas producers like Russia and Iran.

Economic growth

“The United States should not undercut our allies or fund our enemies with a policy that will increase global emissions and hamstring an engine of economic growth,” stated Harbert.

“Freezing approvals for LNG export terminals should be reconsidered immediately,” she said.

The AGA lobbies on behalf of the local energy utilities that deliver natural gas throughout the US to more than 77 million residential, commercial and industrial natural gas customers of which 73M customers receive their gas from AGA members.

“While some advocates against increasing LNG exports have suggested that sending more natural gas overseas could increase domestic prices for US consumers, the government’s own data disproves that theory,” said the AGA.

Analysis from the US Energy Information Administration have suggested that boosting LNG exports would have a minimal impact on US prices thanks to the significant quantities of natural gas available in the US.

Projects likely affected

Four key LNG export plants are expecting to be affected by the US Administration’s blocking policy.

The projects at risk of delay include at least one in Texas and three in Louisiana. They are Sempra Infrastructure’s Port Arthur venture as well as Commonwealth LNG, the Energy Transfer project at Lake Charles and Venture Global’s proposed Calcasieu Pass II (CP2) project.

The last review of US LNG export projects was in 2018, though Biden is seen having moved to act in an election year to boost his environmentalist credentials.

Biden warned that climate change was “the existential threat of our time” in his revised policy on LNG.

“During this period, we will take a hard look at the impacts of LNG exports on energy costs, America’s energy security and our environment,” the President declared.

LNG stabiliser

The AGA concluded that freezing American LNG export permits would have a slowing effect on US economic growth, taking away significant potential job growth while handing an economic victory to America’s adversaries overseas.

“Exports of LNG act as a stabilizing pull factor, with demand that encourages producers to avoid sharply reducing production when faced with low domestic prices,” the AGA noted.

The AGA was founded in 1918 and more than 100 years later in the 2020s natural gas met more than 30 percent of energy needs in the US.

EQT Corp., the leading US natural gas producer in the Appalachia Shale basins, reported lower third-quarter profits and cash flow as prices dropped and other expenses increased, including from integrating acquisitions, as it also continued to prepare for a renewed US LNG production surge.

Commonwealth LNG, the US developer of an export plant in Cameron Parish in Louisiana and whose future customers include Australian liquefaction plants operator Woodside Energy, said it expected the US Department of Energy to approve a licence to export to Non-Free Trade Agreement countries in the weeks ahead.

Commonwealth LNG, the US developer of an export plant in Cameron Parish in Louisiana, and the Singapore trading unit of Australian liquefaction plants operator Woodside Energy, have signed two binding LNG Sale and Purchase Agreements while Woodside also signed an accord to supply cargoes to Uniper of Germany.