Shell Exec: Extended U.S. LNG Export Ban Would Significantly Impact Global Market

(Reuters) — An extended U.S. ban on new liquefied natural gas (LNG) export projects would have "quite an impact" on the fast-growing global market, a senior Shell executive said on Wednesday.

U.S. President Joe Biden last month paused approvals for pending and future applications for new LNG projects, a move cheered by climate activists.

The ban "is probably okay if it lasts a year or so, but if it was a long-term ban, then it would have quite an impact on the market," Steve Hill, who heads Shell's LNG, gas and power division, told analysts.

The United States has become a major exporter of the super-chilled fuel in recent years, including to Europe, which has become heavily dependent on LNG after cutting off most of Russia's pipeline gas exports.

Administration officials vowed that the pause would not hurt allies, as it includes an exemption for national security should they need more LNG.

There are currently projects with a total capacity of 100 million metric tons of LNG under construction in North America, Hill said after Shell published its annual LNG outlook report.

"The impact of the ban will be very much driven by the duration of the ban," Hill said.

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