LNG: US Set to End LNG Pause but Supply Risks Remain: Montel

Both Trump and Harris would likely try to resume LNG export approvals, Montel reported, but additional challenges remain for the industry’s supply.

• The Biden administration in January imposed a temporary freeze on approval of LNG export licenses to countries without a US FTA. It was overturned by a court in July, but the government appealed.
• Highlighting ongoing legal uncertainty in the US is the recent court decision cancelling regulatory authorisation for the 37 bcm/y Rio Grande LNG facility.
• Up to 60m mtpa (82 bcm/y) of global LNG capacity faces fresh challenges amid sanctions on Russia and setbacks in Mozambique, according to Montel.
• The launch of Russia’s Arctic LNG 2 facility was being hampered by US and European sanctions, while Mozambique’s LNG ambitions are hindered by political and security issues.
• Another long-term headwind was the growing scrutiny over LNG’s carbon footprint, which could result in the EU taxing LNG emissions.