Kyushu Electric Power (Kyuden), a large Japanese electric utility, and large importer of LNG for those power plants, has announced that directly as a result of the Biden Administration's pause on LNG export licenses, they will be suspending any decision on investing in Energy Transfer's 16.5 mmtpa (2.2 bcf/d) Lake Charles LNG project. Kyuden's LNG trading unit CEO, Takashi Mitsuyoshi, stated that they couldn't make a final decision until the pause is lifted. Energy Transfer applied for an new export license in October of 2023 after the DOE denied their petition for an extension to their existing license in June of 2023. Kyuden had previously announced that they were the lead on a consortium of Japanese buyers looking to lift 1.6 mmtpa from the facility, potentially with support from Japan's Ministry of Economy, Trade and Industry. They did mention that they remain in talks to conclude that purchase agreeement. Energy Transfer has yet to take a final investment decison (FID) on Lake Charles.
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How Do You Like Me Now? - Who Are the Winners and Losers With Biden's LNG Permitting Pause?
The Biden administration’s recently announced decision to pause further action on new LNG export permits for at least several months sent shockwaves through the industry and shook up expectations regarding which projects will be hurt by — or benefit from — the pause. As we’ll discuss in today’s RBN blog, the decision is likely to put a number of Gulf Coast LNG export projects (one of them a real giant) in limbo, set back a Mexican project that would depend on Permian and Eagle Ford gas, and boost a couple of projects up in Canada. Oh, and there’s this: The pause also may help two avowed enemies of the U.S.: Russia and Iran.
Hot Stuff - With Cheniere's Midscale Expansion, the Future of U.S. LNG Looks Hotter Than Ever
It’s shaping up to be an incredible year for U.S. LNG growth, with record levels of feedgas demand and exports along with progress on the regulatory front, as the Trump administration has cleared away hurdles that had previously stalled project development. Now, Cheniere Energy has announced a positive final investment decision (FID) on its Corpus Christi Midscale expansion. In today’s RBN blog, we take a closer look at the Midscale project and others that could move forward this year.
Tired of Waiting for You - U.S. LNG at a Standstill Waiting Out Construction, Regulatory, Legal Delays
Russia’s invasion of Ukraine and Europe’s subsequent pivot away from Russian natural gas caused a huge resurgence in interest in U.S. LNG. That led to nearly 60 MMtpa (7.9 Bcf/d) of new U.S. LNG capacity reaching a final investment decision (FID) in 2022-23. But regulatory delays at the Federal Energy Regulatory Commission (FERC), the Biden administration’s pause on non-free-trade-agreement (non-FTA) export licenses, and legal challenges to the FERC approval process have essentially halted LNG development in the U.S. There are several LNG projects with enough commercial momentum to move forward that are stuck in regulatory or legal limbo, but even projects that have reached FID are not safe from legal challenges. In today’s RBN blog, we conclude our series on LNG delays by looking at recent court rulings and other regulatory issues and their impact on U.S. LNG development.
