May 17, 2022

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Biden's promise of additional US gas to Europe is unrealistic

Biden’s promise of additional US gas to Europe is unrealistic

You can see the LNG terminals working around the Tellurian site. These operate at maximum capacity and cannot be measured without new terminals. One-third of exports go to Europe in the Atlantic Ocean, and the rest to Asia.

The Asian market could play a key role in fulfilling Biden’s promise, said Sharif Chowki, CEO of Tellurion. “Obviously Asian markets can voluntarily give up their share to Europe, but long-term deals have been signed because they need it.”

According to Chowki, the most obvious option is for Europe to buy the Asian region, but it comes at a price. “One thing I do know is that the market determines prices. When something is in short supply, prices go up.” The question is whether Europe will soon be ready to set that price in Asia.

Working together on long-term planning

The United States wants to grow LNG exports quickly, but because of negotiations and terms, it will certainly take many years. Despite these struggles, Chowki sees a market ruled by faith. The rapid transition to LNG from the West and the ever-increasing demand in the future signals to the market that multi-billion dollar investments are worthwhile. “If the United States and Europe work together on good long-term planning, there is a lot more potential in the future than there is now,” Chowdhury said.

With full enthusiasm, Keith Deek of Tellurion looks around and explains exactly where the storage pits are, where the boats are parked, and what the terminal looks like. “Every year, more than 26 million tons of LNG must be exported here.”

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With the emergence of environmentally harmful fracking, LNG facilities have sprung up in Louisiana, and many construction projects have already been announced in the coming years. To meet this need quickly, there is talk of an energyMarshall PlanTeek: “Then the US and European governments will actively intervene in the construction of the terminals.”

The United States topped the list of the world’s largest LNG exporters later this year, with only Qatar and Australia currently exporting more.