Liquefied Natural Gas or LNG
EU lawmakers
EU lawmakers to Biden: We don’t need more US natural gas
Big oil is trying to make Europe “the excuse” for an unnecessary and planet-heating expansion in gas exports, 60 members of the European Parliament wrote in a Tuesday [1-23-2024] letter to President Biden.
“Europe should not be used as an excuse to expand [LNG] exports that threaten our shared climate and have dire impacts on US communities. Europe’s current consumption of fossil gas is already being met under current import levels and with existing infrastructure.”
European members wrote, noting 40 percent of European gas import capacity currently sits idle
A report by Public Citizen and two environmental NGOs found that less than a fifth of exports from eight such proposed terminals were going to Europe — while more than half of the exports were going to commodity traders, who would flip it to sell to whoever can pay most.
Less than a fifth of exports from eight such proposed terminals were going to Europe
According to data from the International Energy Agency, Europe will need a fifth less gas in 2026 than it did in 2021.
“We know that ongoing dependence on fossil gas, no matter where it comes from, is not in the best interest of the European Union and we are confident you will come to the same conclusion in the United States.”
European members wrote
Pause on new LNG terminals
White House cites climate in pause on new liquified natural gas export terminals
The Biden administration announced a pause on applications for liquified natural gas export terminals on Friday (1-26-2024) to consider their impact on climate change, a major step coming from the world’s largest exporter of natural gas.
The Department of Energy will be launching a review to determine how to factor in the impact of climate change in whether to approve new natural gas export facilities but will not halt current natural gas exports.
“LNG projects are enormous carbon bombs, and each one of them is dozens of coal-fired power plants.”
Craig Segall, VP of Evergreen Action
It would be the first time the federal government has considered blocking this kind of project because it could contribute to climate change. In a statement announcing the news, President Joe Biden said the pause comes as part of his focus to do more on climate change.
“Anyone who tells you that a project that is currently being proposed is for the European energy crisis that we saw a couple of years ago is selling you a red herring because the end of the day these projects are not even going to be online until the 2030s.”
Gillian Giannetti, senior attorney for the NRDC
White House – January 26, 2024
In every corner of the country and the world, people are suffering the devastating toll of climate change. Historic hurricanes and floods wiping out homes, businesses, and houses of worship. Wildfires destroying whole neighborhoods and forcing families to leave their communities behind. Record temperatures affecting the lives and livelihoods of millions of Americans, especially the most vulnerable.
From Day One, my Administration has set the United States on an unprecedented course to tackle the climate crisis at home and abroad – securing the largest climate investment in the history of the world, unlocking clean energy breakthroughs that will power a clean economy and create thousands of jobs, advancing environmental justice for all, and rallying world leaders to transition away from the fossil fuels that jeopardize our planet and our people.
But more action is needed.
My Administration is announcing today a temporary pause on pending decisions of Liquefied Natural Gas exports – with the exception of unanticipated and immediate national security emergencies. 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. This pause on new LNG approvals sees the climate crisis for what it is: the existential threat of our time.
While MAGA Republicans willfully deny the urgency of the climate crisis, condemning the American people to a dangerous future, my Administration will not be complacent. We will not cede to special interests.
We will heed the calls of young people and frontline communities who are using their voices to demand action from those with the power to act. And as America has always done, we will turn crisis into opportunity – creating clean energy jobs, improving quality of life, and building a more hopeful future for our children. Source
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White House Fact Sheet – January 26, 2024
President Biden has been clear that climate change is the existential threat of our time – and we must act with the urgency it demands to protect the future for generations to come. That’s why, since Day One, President Biden has led and delivered on the most ambitious climate agenda in history, which is lowering energy costs for hardworking Americans, creating millions of good-paying jobs, safeguarding the health of our communities, and ensuring America leads the clean energy future.
Today, the Biden-Harris Administration is announcing a temporary pause on pending decisions on exports of Liquefied Natural Gas (LNG) to non-FTA countries until the Department of Energy can update the underlying analyses for authorizations. The current economic and environmental analyses DOE uses to underpin its LNG export authorizations are roughly five years old and no longer adequately account for considerations like potential energy cost increases for American consumers and manufacturers beyond current authorizations or the latest assessment of the impact of greenhouse gas emissions. Today, we have an evolving understanding of the market need for LNG, the long-term supply of LNG, and the perilous impacts of methane on our planet. We also must adequately guard against risks to the health of our communities, especially frontline communities in the United States who disproportionately shoulder the burden of pollution from new export facilities. The pause, which is subject to exception for unanticipated and immediate national security emergencies, will provide the time to integrate these critical considerations.
The U.S. is already the number one exporter of LNG worldwide – with U.S. LNG exports expected to double by the end of this decade. At the same time, the U.S. remains unwavering in our commitment to supporting our allies around the world. Today’s announcement will not impact our ability to continue supplying LNG to our allies in the near-term. Last year, roughly half of U.S. LNG exports went to Europe, and the U.S. has worked with the E.U. to successfully economize consumption and manage its storage to ensure that unprovoked acts of aggression cannot threaten its supply. Furthermore, in 2022, the E.U and U.S. pledged to work toward the goal of ensuring additional LNG volumes for the E.U. market – with the U.S. exceeding our annual delivery targets to the E.U. in each of the past two years. Through existing LNG production and export infrastructure, the U.S. has – and will continue – to deliver for our allies.
As Republicans in Congress continue to deny the very existence of climate change while attempting to strip their constituents of the economic, environmental and health benefits of the President’s historic climate investments, the Biden-Harris Administration will continue to lead the way in ambitious climate action while ensuring the American economy remains the envy of the world.
Biden-Harris Administration’s Top Climate Accomplishments:
- Signed into law the largest climate investment in history, the Inflation Reduction Act, which has already created 210,000 new jobs across nearly every state and attracted more than $200 billion in private clean energy investments ($365 billion since President Biden took office), while putting the U.S. on a path to meet our climate goals and reach 80% clean energy by 2030 – in addition to securing the American Rescue Plan, Bipartisan Infrastructure Law, and CHIPS and Science Act
- Established a whole-of-government strategy to tackle methane emissions – from plugging wells and leaks in the oil and gas sector, to reclaiming abandoned coal mines, to reducing food waste and agricultural emissions, and finalized a historic rule to reduce methane emissions from oil and gas operations by nearly 80%, delivering billions of dollars in health and economic benefits
- Launched the American Climate Corps to mobilize a new, diverse generation of Americans – putting them to work conserving and restoring our lands and waters, bolstering community resilience, deploying clean energy, implementing energy efficient technologies, and advancing environmental justice, all while creating pathways to high-quality, good-paying jobs
- Advancing the most ambitious environmental justice agenda in history, including by signing a historic Executive Order that calls on the federal government to bring clean energy and healthy environments to all and mitigate harm to those who have suffered from toxic pollution and other environmental burdens like climate change; delivering on the Justice40 initiative, which is ensuring that the benefits of President Biden’s historic investments in America – from clean energy projects to floodwater protections – reach communities that need them most; replacing lead pipes and taking action to protect communities from PFAS pollution; accelerating Superfund cleanups; tightening air quality enforcement near pollution facilities; and more
- Protected 26 million acres of lands and waters – on track to conserve more lands and waters than any President in history – including five new national monuments that include protections for lands in Colorado, Nevada, Texas, and most recently, the Baaj Nwaavjo I’tah Kukveni – Ancestral Footprints of the Grand Canyon National Monument in Arizona; initiating new national marine sanctuaries as part of the President’s goal of conserving 30% of lands and waters by 2030, delivering billions of dollars to accelerate land, water, and wildlife conservation efforts in all 50 states, territories, the District of Columbia, and Tribal nations; and more
- Canceled remaining oil and gas leases issued by the previous administration in the Arctic National Wildlife Refuge, proposed protections for more than 13 million acres in the National Petroleum Reserve in Alaska, and withdrew approximately 2.8 million acres of the Beaufort Sea, ensuring the entire United States Arctic Ocean is off limits to new oil and gas leasing
- Signed an Executive Order that sets an ambitious target to make half of all new vehicles sold in 2030 zero-emissions, while proposing strongest-ever limits on tail pipe emissions and issuing fuel economy standards, giving Americans more choices about the cars they drive, and saving Americans hundreds of dollars at the pump
- Proposed carbon pollution standards for coal and gas-fired power plant emissions that would avoid hundreds of millions of tons of carbon dioxide emissions and protect people’s health
- Accelerated permitting of clean energy projects, including 47 projects on public lands that total 11.2 megawatts of wind, solar and geothermal energy on public lands – enough to power more than 3.5 million homes, and broke ground on 10 major transmission projects, which are slated to connect 19.5 gigawatts of new generation to the grid
- Rallied world leaders to raise global climate ambition, including by securing commitments from more than 155 countries to reduce methane emissions by at least 30 percent by 2030, joining leaders at COP28 to commit, for the first time, to transition away from fossil fuels, end new unabated coal capacity globally, and agree to triple renewable energy globally by 2030
- Invoked the Defense Production Act using emergency authority on the basis of climate change to increase domestic production of key clean energy technologies, such as solar, transformers and electric grid components, and heat pumps
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Previous news stories
Democrats revolt against Biden plan for expanded gas exports
Despite the boom in renewables reducing domestic demand for fossil fuels, the administration is backing the gas industry’s plans to sell fuel at higher prices abroad, believing they will lead to less production of climate-warming chemicals like carbon dioxide by displacing dirtier-burning coal.
Congressional letter to President Biden (8-page PDF 11-30-2023)
The fossil fuel industry is making a broader transition to gas, which it is seeking to pitch as a climate-friendly fuel — and the Biden administration has so far allowed it to more than double the number of export facilities to ship gas abroad in its pressurized and liquified form (LNG).
Liquefied Natural Cash (18-page PDF)
Democratic senators, led by Ed Markey (Mass.), have called on the administration to stop investing in gas plants abroad, noting that the administration has already spent $1.8 billion on overseas fossil fuel plants this year alone, along with voting at the World Bank to direct $400 million in new gas financing to poorer countries.
The Greenhouse Gas Footprint of Liquefied Natural Gas (LNG) Exported from the United States
Production increases since 2005
The United States now produces nearly all of the natural gas that it uses
Most of the production increases since 2005 are the result of horizontal drilling and hydraulic fracturing techniques, notably in shale, sandstone, carbonate, and other tight geologic formations.
Natural gas is produced from onshore and offshore natural gas and oil wells and from coalbeds. In 2022, U.S. dry natural gas production was about 13% higher than total U.S. natural gas consumption. Domestic production fullfills most U.S. natural gas consumption, so the United States imports some natural gas to help supply domestic demand.
In 2022, U.S. dry natural gas production was about 1.82 Tcf higher than in 2021, mostly because of higher demand, especially for exports, and higher prices. Five of the 34 natural gas-producing states accounted for about 70.4% of total U.S. dry natural gas production in 2022.
Louisiana LNG
Biden administration taking heat from all sides over Louisiana LNG project
The Biden administration faces mounting pressure over whether to approve a massive new Louisiana LNG export project, with environmentalists saying the facility would undermine U.S. climate goals and business interests arguing it is essential for global energy security.
The Federal Energy Regulatory Commission, a panel of three regulators, is expected to vote in weeks or months on approval of Venture Global’s Calcasieu Pass 2, or CP2, liquefied natural gas terminal (CP2) project. If constructed, CP2 will be twice the size of Venture Global’s present CP plant, with an export capacity of 20 million metric tonnes per year.
CP2 would also need approval from the DOE to export LNG to countries with which Washington does not have a free trade agreement, including ones in Europe and Asia.
Mexico
ExxonMobil (XOM) Signs a 20-year Agreement for LNG Purchase
Exxon Mobil Corporation XOM, the U.S.-based energy giant, signed an agreement to purchase an additional 1.2 million metric tons per year (MMtpa) of Liquefied Natural Gas (LNG) from Mexico Pacific on a free-on-board basis.
This 20-year supply deal with ExxonMobil paves the way for Mexico Pacific to reach a final investment decision to expand its Saguaro Energia LNG Plant, situated on the west coast of Mexico.
Mexico Pacific stated that, with this deal, it has finalized the necessary sales needed to make a final investment decision on Train 3 of the Saguaro Energia project, expected later in 2024.
British Columbia
British Columbia boosts power plan but electrifying LNG proving big challenge
British Columbia boosted its C$36 billion ($26.7 billion) plan to expand its grid over the next decade, but Canada’s Pacific Coast province will still fall short of supplying the biggest liquefied natural gas (LNG) projects with hydropower needed to avoid generating high emissions.
Long regulatory processes mean a critical northern transmission line expansion will only be ready years after LNG plants start operating and droughts are already curbing British Columbia’s (B.C.’s) power generation. B.C. boosted its electricity grid spending plans on Tuesday by 50%, as demand soars from industry for renewable hydropower and as the province switches to electric vehicles and electric heating in buildings.
Qatar & India
Exclusive: Qatar set to sign cheaper long-term LNG deal with India
Qatar Energy within weeks could sign a long-term deal to provide liquefied natural gas (LNG) to Indian buyers on cheaper and more flexible terms than existing contracts, trade sources said, as India seeks to meet a goal to increase the fuel’s use.
The Indian companies and Qatar Energy have agreed on terms and a contract could be signed by the end of this month or early in February, one of the sources said, adding the contract offering destination-flexible cargoes and lower pricing, would run until at least 2050, possibly longer.
US & Europe
US rethinks gas exports, spooking Europe
President Joe Biden’s supporters in the environmental movement cheered the news that the White House is considering strengthening its scrutiny of how gas exports worsen climate change.
The European Union has slashed its intake of Russian gas to less than a third of the 155 billion cubic meters it imported in 2021, according to estimates by the EuroGas trade association. It did that by tripling its imports of U.S. liquefied natural gas, which reached 60 billion cubic meters in 2023.
One senior EU official said the bloc’s leadership wouldn’t be drawn into “speculating on potential U.S. cuts in production or supply to the EU,” given that Washington hasn’t communicated any such move.
LNG Freeze
US LNG feedgas cut by Arctic freeze, problems at Freeport LNG
The amount of natural gas flowing to U.S. liquefied natural gas (LNG) export plants dropped to a one-year low this week as an Arctic freeze caused some energy firms to divert fuel to the domestic market and Freeport LNG’s facility in Texas experienced mechanical problems.
Gas flows to the seven big U.S. LNG export plants have fallen to an average of 13.9 billion cubic feet per day (bcfd) so far in January from a monthly record of 14.7 bcfd in December, according to data from financial firm LSEG.
One billion cubic feet of gas is enough to supply about 5 million U.S. homes for a day.
Gas coalition fears
Natural gas coalition warns Biden administration against pausing LNG exports
The warning comes as the Biden administration considers changes in how it determines whether additional LNG exports are in the “national interest” — a legal test for licenses to ship LNG to countries that aren’t U.S. free-trade partners.
Administration officials are weighing greater scrutiny of the greenhouse gas emissions and climate consequences of additional exports, a review that could slow or even freeze the Energy Department’s issuance of new licenses. The U.S. and nearly 200 other nations agreed to transition away from fossil fuels at the end of United Nations climate negotiations in December.
LNG Glut
The LNG glut will chill the gas ambitions of oil majors
The world of liquefied natural gas is no stranger to booms and busts. A dearth of new projects raises prices, leading to a rush to bring new gas to market.
The next big upswing in capacity is beginning, with a wave of the supercooled fuel visible over the horizon. That is good news for gas-starved utilities and countries fretting over energy security — less so for companies seeking to sell LNG into the European market.
The market is set to get more LNG than it bargained for. Projects capable of producing 140mn tonnes per annum (mtpa, equivalent to 200bcm) are set to come on stream between 2025 and 2027, according to Bernstein. That’s more than 30 per cent of the current market.
Shipping disruptions
Chinese Plastic Makers’ Bets on Cheap US Gas Foiled by Disruptions at Panama and Suez
The Chinese petrochemical sector’s bet on profiting from a steady supply of cheap US gas to make plastics is quickly going awry, as twin choke-points for shipping upend trade flows and drive up costs. China has invested heavily in its petchems industry in recent times.
But the massive expansion in capacity accelerated last year just as the Chinese economy was stuttering, slowing consumption and creating a glut of plastics across Asia. A large proportion of the new plants use propane, which is mostly imported from the U.S. The new wave of budding players that employ propane dehydrogenation, or PDH, technology — once seen as a promising corner of the petchems sector — are being forced to scale back.
Chester, Pa.
Biden’s pause on LNG approvals may have ‘saved Chester,’ the city’s new mayor says
A liquefied natural gas plant would be “game-over,” Mayor Stefan Roots said. “No one would want to come here.” President Joe Biden’s decision to pause federal approval of liquefied natural gas plants may have cost the desperately broke bankrupt City of Chester and Pennsylvania hundreds of millions of dollars in tax revenues and hundreds of jobs. “I think he saved Chester,” said Stefan Roots, who took office earlier this month. While some were encouraged by the prospect of hosting the plant, he said doing so would be “game-over, because no one would want to come here.” Chester already is home to an incinerator and a waste-treatment plant.
The Energy Age 