The U.S. national average price…
Russia’s invasion of Ukraine has…
In response to Russia’s move to cut off gas to Poland and Bulgaria, the Biden administration has authorized more LNG shipments from two U.S. plants currently in the development phase.
Texas-based Golden Pass LNG, owned by Exxon and Qatar Petroleum, have been authorized to export an additional 0.35 billion cubic feet per day of LNG, including to Europe. The second authorization is for Louisiana-based Magnolia LNG, owned by Glenfame Group LLC, to ship an additional 0.15 billion cubic feet per day, Bloomberg reports.
Golden Pass should be online in 2025, while Magnolia is expected to launch exports around 2027.
Speaking to reporters at a U.S.-EU energy meeting in New Jersey, Energy Secretary Jennifer Granholm said the new authorizations ensure that the U.S. is “able to allow those who intend to produce, have the freedom to be able to ship to Europe", Reuters reported.
On Tuesday, Russia said it would cut off gas to Poland and Bulgaria by Wednesday over their refusal to pay in roubles, sending natural gas prices surging again as the European Union grapples with the possibility of banning Russian oil and gas.
The EU has accused Russia of “blackmail”, with European Commission chief Ursula von der Leyen saying the bloc was “prepared” for this and vowed a “coordinated response”.
In March, the Department of Energy authorized exports from two currently operating LNG projects, Cheniere Energy’s Sabine Pass in Louisiana and Corpus Christi in Texas. Those authorizations gave the two LNG export facilities the ability to export 0.72 billion cubic feet per day of LNG.
At the time, the DOE noted that U.S. exporters were “already exporting at or near their maximum capacity”, and that the March authorizations essentially served as approval for every operating U.S. LNG export project to export at full capacity.
By Charles Kennedy for Oilprice.com
More Top Reads From Oilprice.com:
Charles is a writer for Oilprice.com