Factbox: European and Asian companies affected by US pause on LNG export permits

SK Gas

02/02/2024 14:14

Feb 2 (Reuters) - U.S. President Joe Biden's
administration announced a pause on pending and future permits
to export liquefied natural gas (LNG) to non-Free Trade
Agreement countries until the Department of Energy finishes a
new review of climate impacts.
    In 2023, roughly 67% of U.S. LNG exports went to Europe and
40% went to Asia, LSEG data showed.
    ANAYSIS-US LNG export pause leaves EU, industry at odds over
energy security.
    Below are contracts signed with projects potentially
impacted by the pause. 
    
    Venture Global LNG's Calcasieu Pass 2 plant
    The project is part of a proposed 20 mtpa expansion of its
existing Louisiana facility. It is awaiting U.S. Federal Energy
Regulatory Commission (FERC) approval to begin construction. It
signed the following eight 20-year contracts, starting in 2026:
    
    - In the United States: New Fortress Energy  NFE.O , Exxon
Mobil  XOM.N  and Chevron  CVX.N  have each signed a contract
for 1 million metric tons per year (mtpa).
    
    - In Germany: Utility EnBW signed a contract for 0.75 mtpa,
whereas SEFE signed a contract for 2.25 mtpa. 
    SEFE said the  moratorium put in place unilaterally by the
U.S. government affects it as a company and the stability and
security of supply of the European energy markets in general.
    
    - In Japan: Inpex Corp  1605.T , the country's biggest oil
and gas explorer, signed a 20-year contract for 1 mtpa, while
the country's top LNG buyer, JERA, signed a 20-year contract for
similar volumes.
    Inpex Corp said it is reviewing the situation closely, while
    JERA said the pause could affect Japan's fuel security, and
even the world's.     
    
    - In China: China Gas Holdings  0384.HK  in 2023 signed a
20-year contract for 1 mtpa.
    
    Energy Transfer's Lake Charles LNG project
    Energy Transfer  ET.N  re-applied for an export permit for
its Lake Charles LNG facility in Louisiana after its original
permit expired without completing construction. It sought a new
non-FTA license in August 2023. 
    Energy Transfer has signed the following 6 contracts:
    
    -In China: China Gas Holdings signed a 25-year contract for
0.7 mtpa starting 2026.
    ENN Natural Gas  600803.SS  signed a 20-year contract for
1.8 mtpa starting 2026, while its subsidiary ENN Energy signed a
20-year contract for 0.9 mtpa starting 2026.
    
    -In South Korea: SK Gas  018670.KS  signed a contract in
2022 for 0.4 mtpa for 18 years starting from 2026. 
    
    -In Switzerland: Commodity trader Gunvor Group  GGL.UL 
signed in 2022 a 20-year contract for 2 mtpa starting from 2026.
    
    -In Britain: In 2022, Shell  SHEL.L  signed a 20-year
contract for 2.1 mtpa starting 2026. 
    
    Delfin LNG
    Delfin Midstream Inc's project, Delfin LNG Deepwater Port,
will support up to four floating LNG vessels with a combined
export capacity of about 13.3 mtpa. 
    The company signed the below three contracts:
    
    In Switzerland: Commodities trader Vitol  VITOLV.UL  signed
in 2022 a 15-year contract for 0.5 mtpa starting in 2026. 
    
    In Britain: Centrica  CNA.L  signed in 2023 a 15-year
contract for 1 mtpa starting 2027.
    Hartree Patners Power and Gas company signed in 2023 a
20-year contract for 0.6 mtpa.
    
    Commonwealth LNG
    Commonwealth LNG has been waiting since November 2022 for
approval for its 9.3 mtpa LNG export facility in Cameron,
Louisiana. The firm has reached agreements for just about 50% of
capacity and was targeting a final investment decision this
year.
    It has signed only one contract with Woodside Energy
 WDS.AX  for up to 2.5 mtpa over 20 years starting 2026. 
    
    Saguaro Energia LNG
    Analysts said the pause could also impact LNG projects in
Mexico as they plan to use U.S. feedgas.
    Mexico Pacific's 14.1 mtpa planned LNG export facility,
Saguaro Energia on Mexico's west coast, targets the start of
commercial operations in 2026. It has signed the below
contracts:

    - In China: Guangzhou Development Group  600098.SS  signed a
deal to buy 2 mtpa of LNG for 20 years. 
    Zhejiang Energy also inked an agreement to buy 1 mtpa over a
20 year period. 

    - In Australia: Woodside Energy agreed to buy 1.3 mtpa of
LNG for 20 years. 
    
    - In the United States: Exxon Mobil inked two deals with
Mexico Pacific. The first was a 20-year term to buy about 2 mtpa
from the project's first two trains, with an option for 1 mtpa
from train 3. The second deal was for an additional 1.2 mtpa
over a 20-year period. 
    ConocoPhillips  COP.N  signed 20-year deal to receive a
collective 2.2 mtpa of LNG. 
    
    - In Britain: 
    Shell signed a deal to offtake 2.6 mtpa from the project's
first two trains for 20 years and later agreed to buy an
additional 1.1 mtpa from the third train for 20 years. 
    

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FACTBOX-Companies most affected by US pause on LNG export
permits - Reuters News     ID:nL1N3EG1Q8 
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 (Reporting by Marwa Rashad in London and Emily Chow in
Singapore; Additional reporting by Christoph Steitz in Fankfurt,
Yuka Obayashi in Tokyo and Scott DiSavino in New York;
Additional reporting by Curtis Williams in Texas; Editing by
David Evans)
 ((marwa.rashad@thomsonreuters.com; +447823669044; Reuters
Messaging: marwa.rashad.thomsonreuters.com@reuters.net))