NO. 1: The Biden administration has rejected a proposal from House Speaker Mike Johnson (R-LA) to tie a national security package to a temporary pause on new LNG export authorizations.
Johnson reportedly wanted to advance aid for Ukraine and Israel in exchange for lifting the pause imposed in January by the Biden administration. The administration dismissed the idea, indicating the funding package, which has already cleared the Senate, should be passed as quickly as possible.
The White House earlier this week stated President Biden “supports the pause” on additional approvals for pending liquefied natural gas export licenses “to evaluate the economic and climate impacts on consumers and communities.”
The U.S. Department of Energy (DOE) suggested last week in denying industry petitions for rehearing of the pause that it could end before March 2025. At least seven LNG projects in the United States and Mexico under DOE jurisdiction – and considered commercially advanced – could be impacted in the near term, according to an NGI review of pending projects.
NO. 2: LNG output at PAO Novatek’s Arctic LNG 2 export plant reportedly has fallen significantly since the first 6.6 million metric tons/year (mmty) train started up in December. Russia apparently is seeking alternatives as it looks to expand liquefaction capacity, according to reports.
Russian newspaper Vedomosti cited anonymous sources in reporting the decline. U.S. sanctions against the 19.8 mmty facility have created a shortage of ice-class tankers to transport cargoes from the facility in Russia’s Far North and storage has run out, according to Vedomosti.
Western sanctions have created hurdles for Russia’s ambition to triple LNG exports to 100 mmty by 2030. As a result, chatter about Arctic LNG 2’s future is increasing. The terminal was expected to be completely online by 2026, but Reuters reported Thursday that Novatek is now considering scaling back the project to focus instead on the ice-free port of Murmansk, where a 20.4 mmty export plant is being developed.
NO. 3: Bloomberg reported Thursday that Egyptian Natural Gas Holding Co. purchased an LNG cargo on the spot market and is looking for more in an effort to avoid blackouts this summer.
It is a rare move for the country, which exports LNG. However, extreme heat and declining local production have forced exports to be halted in the past to conserve supplies for domestic consumption. The country’s move into the spot market comes as the spring restocking season gets underway in Asia and Europe.
Egypt’s LNG exports dropped to 3.4 mmty last year, compared with 7.14 mmty in 2022, according to Kpler.
