CEO: Other Nations Will Fill LNG Gap if U.S. Retreats, Baker Hughes Affirms
(Reuters) — If the U.S. pulls back from permitting new liquefied natural gas (LNG) export plants, demand for the fuel will still be met from projects in Qatar, Argentina and Africa, the CEO of Baker Hughes, the world's largest provider of equipment for the LNG sector, said on Thursday.
The Biden administration in January paused new export permits for LNG projects to study the impact of further expansion, a move that has drawn criticism from LNG companies and their advocates.
"We believe by 2030 there needs to be an installed base capacity of LNG of 800 million tons per annum and either through U.S. projects or international projects," Baker Hughes CEO Lorenzo Simonelli said in an interview on the sidelines of CERAWeek conference in Houston.
Qatar, one of the top LNG exporters, has announced plans to significantly expand its production, underpinned by the additional resources in its North Field.
"If you look at projects in Africa, you have the Rovuma project. In Argentina, we know they have plenty of gas. There are plenty of opportunities internationally as well as floating LNG," Simonelli told Reuters.
Africa is at the forefront of a global wave of new floating LNG facilities, including Mozambique which shipped its first LNG cargo from its offshore Rovuma basin to Europe in 2022.
Argentina's Vaca Muerta, a formation that rivals the U.S. Permian basin, holds the world's second-largest shale gas reserves and could become a key global supplier of gas if the country speeds up projects planned for exporting LNG.
So far, the U.S. permitting pause has not led to the cancellation of any equipment orders from U.S. companies and has had no impact on Baker Hughes' business, said Simonelli.
The growth in artificial intelligence has had a material impact on power demand and one that is being considered in Baker Hughes forecasts for supplying equipment, said Simonelli.
Related News
Related News
- Trump Aims to Revive 1,200-Mile Keystone XL Pipeline Despite Major Challenges
- Valero Considers All Options, Including Sale, for California Refineries Amid Regulatory Pressure
- ConocoPhillips Eyes Sale of $1 Billion Permian Assets Amid Marathon Acquisition
- ONEOK Agrees to Sell Interstate Gas Pipelines to DT Midstream for $1.2 Billion
- Energy Transfer Reaches FID on $2.7 Billion, 2.2 Bcf/d Permian Pipeline
- U.S. LNG Export Growth Faces Uncertainty as Trump’s Tariff Proposal Looms, Analysts Say
- Tullow Oil on Track to Deliver $600 Million Free Cash Flow Over Next 2 Years
- Energy Transfer Reaches FID on $2.7 Billion, 2.2 Bcf/d Permian Pipeline
- GOP Lawmakers Slam New York for Blocking $500 Million Pipeline Project
- Texas Oil Company Challenges $250 Million Insurance Collateral Demand for Pipeline, Offshore Operations
Comments