Let′s say a few words about how LNG activity is evolving these days.
First, I′d say that since global gas prices, especially in the US (see item 3), are depressed: because of gas inventories in Europe are higher than recent years and China energy demand is not as optimistic as it could be, LNG producers and LNG projects are navigating in agitated waters at this moment.
Under this scenario the past week has brought some significant issues.
- European energy firms have intensified their claims to US FERC about Venture Global LNG Calcasieu Pass export Plant contract product delivery: They are asking US FERC to deny requested one year extension of Venture Global LNG construction permit for its Calcasieu Pass LNG Plant and to release commissioning documents of that plant. Reference: Major European energy companies ask US regulators to deny Venture Global LNG's permit extension | Reuters
- ARAMCO and ADNOC would be interested in investing in US LNG projects: They would be approaching Sempra and NextDecade LNG projects. Reference: Exclusive: Saudi Aramco, UAE's ADNOC in talks to invest in US LNG projects, sources say | Reuters
- US gas prices, the lowest in years: The U.S. benchmark Henry Hub daily natural gas price averaged $1.50 per million British thermal units (MMBtu) on February 20, 2024, the lowest price in inflation-adjusted dollars since at least 1997, according to data from Refinitiv Eikon. High natural gas production, low natural gas consumption, and higher natural gas inventories than the previous five-year (2018–22) average contributed to prices declining for much of 2023 and the first two months of 2024. Reference: Henry Hub daily natural gas spot price fell to record lows in February - U.S. Energy Information Administration (EIA)
