The US is projected to be the world’s largest LNG exporter this year, surpassing Australia and Qatar while booming global gas markets and European buyers’ appetite for securing more gas and LNG from non-Russian sources have provided a golden opportunities for the US LNG exports promoters.
Henry Hub gas prices’ low volatility and the sales contracts’ high flexibility have made the US LNG more attractive over the other suppliers with restricted destination contracts for the buyers; portfolio players, traders and end-users, Mostafa Sharif, Gas Market Senior Advisor told Global LNG Info, adding that the “recent European gas market developments driven by Russia-Ukraine conflicts have significantly bolded these advantages which along with high global natural gas prices are breaking 2-year freezing conditions of the new US LNG projects.”
Europe's declining indigenous gas production and EU’s plans to reduce dependency on Russia for its supplies have driven attentions on the need for new LNG plants in the US and elsewhere.
Europe was US LNG top destination in February for third consecutive month, taking nearly 75% of exports. Sanctions against Russia over its invasion of Ukraine could reduce Europe's access to supplies of gas and would lead to further calls for US LNG from European buyers (more info)

 

Recent LNG Sales Contracts

Cheniere Energy’s subsidiary, Corpus Christi Liquefaction (CCL) has agreed with Engie to amend the LNG sale and purchase agreement which the parties previously entered into in June 2021. Under the extended LNG SPA, Engie has agreed to purchase approximately 0.9 MMT/Y of LNG from CCL on a FOB basis for a term of approximately 20 years, which began in September 2021.
And, Venture Global LNG and Shell have signed a deal under which the US-based exporter will supply Shell with 2 MMT/Y of LNG to be produced at the proposed Plaquemines LNG export plant in Louisiana. The contract’s duration is 20-year. Shell already purchased 2 MMT/Y of LNG from Venture Global's Calcasieu Pass plant in Cameron, which has been recently commissioned and exported its first cargo.
Calcasieu Pass LNG facility has recently exported its second commissioning LNG cargo which loaded into the 147,100-CM Vivirt City LNG vessel and is scheduled to offload its cargo at South Hook LNG receiving terminal in Milford Haven, UK.

 

Recent EPC Contracts

At least three proposed LNG export projects e.g. Venture Global’s Plaquemines and Cheniere Energy’s Corpus Christi Stage-3 are likely taking final investment decisions this year as several LNG sales contracts supporting these projects to winning financing.
Cheniere Energy has entered into a lumpsum, turnkey, engineering, procurement and construction (EPC) contract with Bechtel for its Corpus Christi liquefaction (CCL) Stage III project. “In addition, CCL Stage III has released Bechtel to commence early engineering, procurement and other site work at the Corpus Christi Stage III Project under a limited notice to proceed (LNTP).”
The Corpus Christi Stage III Project is a fully permitted project consisting of up to 7 midscale trains, each with liquefaction capacity of about 1.49 MMT/Y of #LNG with a total #production capacity of more than 10 MMT/Y. “The project is commercially underpinned by long-term agreements with creditworthy counterparties.”
In other development, Venture Global LNG has recently granted notice to proceed to Baker Hughes to provide a LNG system for the first phase of the Plaquemines LNG project in Louisiana. Baker Hughes manufactures, tests and transports the pre-assembled and fully integrated modular turbomachinery units for Venture Global LNG.

 

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