Daily Management Review

Shell head criticizes freeze on issuing licenses for USA LNG exports


Shell CEO Wael Sawan claims that the industry as a whole is suffering from the US President Joe Biden administration's decision to halt the licensing of new LNG export projects, writes the Financial Times.

"I don't think the administration's recently announced measures will necessarily affect LNG supply in the short or medium term, but I think it undermines confidence in the long term," he stated.

The Department of Energy declared a review of its determinations of whether new projects are in the public interest, and the Biden administration had already stopped its consideration of new LNG export licenses. Analysts expect that the process of approving new LNG export permits won't start up again until after November's presidential election.

Additionally, Shell is having issues with Venture Global, an LNG supplier, which it claims is not living up to the terms of multibillion-dollar contracts to deliver fuel from the Louisiana Calcasieu Pass plant. Although the plant started production as early as January 2022 and has been selling gas on the spot market ever since, the company is allegedly pushing back the commencement of LNG supplies under long-term contracts to the end of 2024.

source: ft.com