LNG: Limited Impact on US LNG Contracting Despite DOE Export Pause

The pace of US LNG contracting in H1 2024 nearly matches the pace seen a year earlier, according to Energy Intelligence. The Biden administration's pause on export approvals, lifted by a judge earlier this month, has not had a significant impact on future US LNG projects counter to some analysts’ predictions.

• Contracts were signed for up for 17.1mtpa (2.3bcf/d) of US LNG offtake from January through June, compared to 19.4mtpa (2.65 Bcf/d) in the first-half of 2023. Including Canadian and Mexican projects the volume was 20.3mtpa.
• "After a slow start to 2024, contracts with US LNG facilities have picked up," said Tudor Pickering Holt. "Although uncertainty remains with the LNG pause, shippers seem willing to sign [heads of agreement] with projects that are heavily contracted or gaining momentum."
• The US DOE license pause gave momentum to already approved projects, attracting interest from firms immune to short-term political cycles.
• Most of the contracts this year were signed by upstream US and international producers, including EQT, Exxon Mobil, Chesapeake Energy, Aethon and Saudi Aramco.
• Despite the pause, projects such as the proposed 4.2mtpa Gulfstream LNG and 20mtpa Argent LNG have taken multiple steps forward.