Gas Shortage Looms as LNG Exports Face Partial Ban

Product
Liquified Natural Gas
Message Category
UserPic
Kokel, Nicolas
2/2/2024 6:04 AM


The Energy Information Administration (EIA) under the US Department of Energy has revealed that the US President has initiated a partial ban on gas exports to nations lacking free trade agreements with the US.

Currently, a significant portion, about 90%, of US liquefied natural gas (LNG) is directed to countries not covered by such agreements, including several EU member states.

Washington has temporarily deferred its decision to export LNG to non-free trade agreement nations, allowing the Department of Energy to revise its analysis of US liquefied methane sales.

Earlier, the US presidential administration halted approvals for new LNG projects, drawing criticism from oil and gas producing states, notably Texas.

These measures are poised to significantly hinder new liquefaction endeavors in the US. Moreover, the American administration's move places the European Union in a precarious position, as its reliance on American LNG played a substantial role in reducing dependence on Russian Federation's political raw materials. The looming shortage indicates that American imported gas might exhaust within the next five years.