Bidenistas Change of Heart – Support for Long-Term LNG Deals

In March Joe Biden announced a deal with Europe to deliver more LNG to the Continent, starting this year (see U.S. & Europe Announce New LNG Deal – Very Light on Details). The U.S. guaranteed Europe would receive 15 bcm (billion cubic meters) of natural gas beginning in 2022. As we speculated at the time, most of that additional gas will come from redirecting existing U.S. cargoes from other destinations to Europe (see Can U.S. Alone Meet Biden’s Call for Extra LNG Supplies to Europe?). The U.S. is not capable of producing any more LNG from our existing export facilities (with the exception of small increases at a few facilities, see DOE Authorizes More LNG Exports from 2 Cheniere Facilities). We actually need more export facilities if we are to materially increase LNG shipments to Europe. The Biden administration recently changed its heart on approving new LNG facilities, embracing the fact that such facilities will need long-term (decades-long) contracts.

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