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EQT says the Biden administration's suspension of new licenses for liquefied natural gas export projects is a “political stunt” that will increase emissions and undermine global energy security.New York Stock Exchange:EQT) CEO Toby Rice said this week: Criticism of the decision is mounting.
Rice said in an interview with Bloomberg that this is “bad policy” from an environmental and energy security perspective because limiting LNG will increase emissions, as LNG can help replace coal.
Rice said projects scheduled to come online in 2027-28 are “now shifting to the left with this uncertainty,” meaning the ability to replace foreign coal is also “shifting to the left.” Mr. Rice said he planned to testify at the meeting. A House Energy and Commerce Subcommittee hearing will be held next week.
Exxon Mobil (XOM) Chief Financial Officer Kathy Michels said Friday that the suspension is a “mistake” that will have a “real negative impact on the world reaching net zero sooner or later.” .
A group of 10 Democratic U.S. House members from gas-producing states such as Texas, Alaska and California sent a letter to Biden urging him to reconsider.
How many Republicans, along with Republicans, will support a future resolution of disapproval that deems White House energy policies “harmful” and “anti-American” that would undermine U.S. energy security and ultimately help Russia? It is not yet clear whether House Democrats will be able to vote yes.
However, even if there is no decision, there is likely to be a natural lull in the construction of LNG export facilities, Jinju Li said. wall street journal's “Heard On The Street'' column.
The United States has already granted non-free trade agreement export permits to projects worth 48.6 billion cf/d. Of these, projects with a total capacity of 22.1 billion cf/d had not begun construction as of the end of 2023, likely due to the inability to secure sufficient contracts to reach a final investment decision; That means gas buyers around the world aren't making a fuss. to ensure supply in the medium term, Lee wrote.
Wood Mackenzie expects the global LNG market to absorb an 18-24 month delay, given the number of projects already under construction in the United States.
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