Biden Attacks NatGas by Blocking 17 U.S. LNG Export Terminals
Two weeks ago, MDN warned you that the Bidenistas were conducting a secret “review,” being led by the Department of Energy (DOE), to evaluate whether regulators should consider mythical “climate change” when deciding whether a proposed natural gas export project meets “the national interest” (see Bidenistas Look to Block Authorization of New LNG Export Projects). It is a prelude to introducing new guidelines that will block the approval of ANY new LNG export project. It’s now happened. The DOE is about to announce it will delay the approval of Calcasieu Pass 2 while considering so-called global warming considerations. The pattern is: delay, then deny, then defend the denial.
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The Gas Exporting Countries Forum (GECF) is a group of natural gas exporting countries, including Qatar, Russia, Iran, and Venezuela — terrorist-supporting countries led by thugs and dictators. Whoops! A little too much honesty there? We don’t normally track the actions and statements of the GECF. However, the group holds more than two-thirds of the world’s gas supplies (so they say). So you can’t totally ignore them. The GECF is predicting a “tight” LNG market worldwide until at least 2026.
According to Reuters, the amount of natural gas flowing to U.S. liquefied natural gas (LNG) export plants (called feedgas) dropped to a one-year low this week as an Arctic freeze caused some energy firms to divert fuel to the domestic market, and as Freeport LNG’s facility in Texas experienced mechanical problems. Yep, another outage at Freeport. Surprised?
In what is a laughable defense, Venture Global LNG told the Federal Energy Regulatory Commission (FERC) that it cannot meet contractual obligations to provide liquefied natural gas (LNG) cargoes to several major customers because its export plant is not yet ready to meet three criteria found in the contracts. Venture Global continues its charade that the Calcasieu Pass export facility is not yet ready for primetime — even though it has shipped over 200 cargoes! Venture Global is using language in the contracts as an excuse to continue profiting from not honoring those contracts and instead selling cargoes at a higher non-contract price. It’s disgusting, and it’s giving American LNG a black eye.
Even though separately (and together) Chesapeake Energy and Southwestern Energy own MORE assets in the Marcellus/Utica than in the Haynesville shale play, the main driver to do a merger between the two companies is the Haynesville and that play’s close proximity to LNG export facilities along the Gulf Coast. That is the conclusion of most analysts based on comments made yesterday by Chesapeake and Southwestern in announcing a $7.4 billion deal to combine the companies (see 
The Bidenistas are conducting a secret “review,” being led by the Department of Energy, to evaluate whether regulators should consider mythical “climate change” when deciding whether a proposed natural gas export project meets the national interest. It is a prelude to introducing new guidelines that will almost certainly block the approval of ANY new LNG export project. Yet another attack by the Bidenistas against fossil fuels in general and natural gas in particular. Surprised? We aren’t.
EQT CEO Toby Rice appeared on CNBC’s ‘Money Movers’ program last Friday to discuss what he expects for natural gas prices this year, what lower natural gas production means for EQT, and more. It was an interesting segment (watch it below; it is just four minutes long). Rice said, among other things, that a key issue for people to understand is that the marginal cost (i.e., the breakeven cost) in the U.S. to produce natural gas is around $3.50/MMBtu, which will hold production levels flat. Prices lower than that lead to lower production.
Wow! That was fast! On Dec. 27, pipeline giant Williams issued a press release to announce a deal to buy six underground natural gas storage facilities located in Louisiana and Mississippi with a total capacity of 115 billion cubic feet (Bcf), as well as 230 miles of gas transmission pipeline and 30 pipeline interconnects, for $1.95 billion. Some of the interconnections connect to the Williams Transco pipeline system, a huge system that transports Marcellus/Utica gas to the Gulf Coast area. One of the big reasons for the deal, according to Williams, is to connect more gas supplies to LNG export markets. Yesterday, Williams issued a second press release to say the deal is already done! Williams now owns the assets.
Shell, one of the contracted customers to receive LNG from Venture Global’s Calcasieu Pass LNG export facility, added its voice to BP’s request with the Federal Energy Regulatory Commission (FERC) to release documents from Venture Global related to an ongoing delay in making the plant commercial. The Calcasieu Pass LNG export facility recently received FERC authorization to place the final three liquefaction blocks (7-9) into service (see 
U.S. liquefied natural gas (LNG) exports hit monthly and annual record highs in December, according to tanker tracking data reviewed by Reuters. Analysts say the data shows the United States leapfrogged both Qatar and Australia to become the largest exporter of LNG in 2023. The two main factors for the U.S. achieving the #1 position are (a) Freeport LNG returned to full service after being down for 10 months following an explosion and fire, and (b) Venture Global LNG’s Calcasieu Pass facility adding more capacity to a facility that it still claims is not commercially ready.
Freeport LNG’s export terminal with three liquefaction “trains” shut down in June 2022 after an explosion and fire (see 