LNG Buyers Warn of U.S. Supply Risks After Export Permit Pause
(Reuters) — Major buyers of liquefied natural gas (LNG) flagged risks of purchasing cargoes from the United States following the decision by President Joe Biden's administration to pause export permits of the superchilled fuel to non-Free Trade Agreement countries.
Officials from Taiwan's CPC Corp and Germany-based SEFE, which trades LNG cargoes and sells in Asia, stressed the importance of reliability of supply while responding to a question on the impact of the U.S. export pause on Asian markets.
"I do trust the traditional LNG suppliers more than U.S. LNG players," said Jane Liao, vice president at CPC, told the APPEC conference.
"Most of the Asian buyers, we rely on traditional LNG suppliers, which cherish the long-term relationship more. When you are in difficulties in the implementation of your contract, people will sit down and talk," she said.
Fabian Kor, executive vice president Asia at SEFE, said energy security was the topmost priority this year, adding that SEFE may even "slightly overcontract" to ensure availability.
"We will not concentrate on supply, just because it is the cheapest in the U.S. We like a bit of geographical supply diversification," he said.
"In terms of the U.S., we are quite ambivalent now, meaning we prefer something that is more firm."
On supplies of Russian LNG, Liao also said Chinese and Indian purchases of Russian LNG cargoes would ensure the market remains in balance.
"Let's say the Chinese companies or the Indian companies, they continue to purchase from Russia, so they won't compete with us in the rest of the market," she said.
Related News
Related News
- Phillips 66 to Shut LA Oil Refinery, Ending Major Gasoline Output Amid Supply Concerns
- FERC Sides with Williams in Texas-Louisiana Pipeline Dispute with Energy Transfer
- U.S. Appeals Court Blocks Kinder Morgan’s Tennessee Pipeline Permits
- ConocoPhillips Eyes Sale of $1 Billion Permian Assets Amid Marathon Acquisition
- Valero Considers All Options, Including Sale, for California Refineries Amid Regulatory Pressure
- U.S. Appeals Court Blocks Kinder Morgan’s Tennessee Pipeline Permits
- Malaysia’s Oil Exports to China Surge Amid Broader Import Decline
- U.S. LNG Export Growth Faces Uncertainty as Trump’s Tariff Proposal Looms, Analysts Say
- Marathon Oil to Lay Off Over 500 Texas Workers Ahead of ConocoPhillips Merger
- Valero Considers All Options, Including Sale, for California Refineries Amid Regulatory Pressure
Comments