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Impact of Biden’s Moratorium on LNG Exports: How Does It Affect the Market?

Written by Paulo Nogueira
Published on 05/02/2024 at 10:58
Updated on 05/02/2024 at 10:59
exportação de gás natural liquefeito, pausa às licenças para novos projetos de exportação, American Petroleum Institute (API), Austrália, Canadá, Catar, Distribuição de Gás Natural, DoE, EUA, Gás Natural Liquefeito (GNL), IEEFA, Joe Biden, Wood Mackenzie
Citygate – ponto de entrega de gás natural (Foto: Divulgação) – Todos os direitos: EPBR
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Biden Freezes Licenses For New LNG Export Plants, Impacting Market Dynamics And International Prices. Measure Aims To Combat The Climate Crisis And Ensure Supply Security.

LNG Export is a Crucial Activity For Many Countries, Including The United States. The Recent Decision By Joe Biden’s Government To Pause Licenses For New Liquefied Natural Gas (LNG) Export Projects May Have Significant Short-Term Impacts On The Market, But Experts Believe That The Situation Should Not Last.
Despite The License Pause For New Export Projects, Analysts Say That If The Freeze Lasts Longer, The Effects On Market Dynamics Could Become Structural, Impacting Prices And Trade Flows. Still, Liquefied Natural Gas Export Will Continue To Play A Key Role In Global Energy Trade.

LNG Exports: Pause On Licenses For New Export Projects

Next, Analyzes The Implications Of The Measure:

  • What The Pause Imposed By Biden Means
  • Why The U.S. Is Restricting Exports
  • What The Immediate And Long-Term Impacts Are On New Projects
  • How It Affects The Geography Of The Global LNG Market
  • Where The Prices Are Going
  • What The Geopolitical Effects Are
  • The Environmental Consequences For The Local Industry
  • Who May Gain And Lose From The Measure
  • And What This Means For Brazil

For A Liquefaction Project To Export LNG From The U.S. To Countries With Which The United States Does Not Have A Free Trade Agreement (FTA), The Agent Needs Approval From The Department Of Energy (DoE). The Same Applies To Projects In Mexico And Canada That Use American Gas As A Raw Material.

Last Week, An Executive Order From The U.S. President Determined A Temporary Pause On Approving New Export Projects.

The Interruption Applies Specifically To The Shipment Of Gas To Countries With Which The U.S. Does Not Have An FTA – In This Case, Most Major Importers In Europe And Asia. The Exception Is South Korea.

In The Announcement, The U.S. Government Justified That The Measure Will Allow The DoE To Update Its Authorization Analysis Criteria.

Pressed By Environmental Groups, In The Midst Of An Election Campaign For The Presidency In 2024, Biden Justified The Freeze On New Licenses By The Environmental Nature.

In The Environmentalists’ Assessment, The U.S. Leadership In Global LNG Exports Contradicts The Democratic Administration’s Political Ambitions To Reduce Greenhouse Gas Emissions At The National And Global Levels.

‘During This Period, We Will Carefully Analyze The Impacts Of LNG Exports On Energy Costs, America’s Energy Security, And Our Environment. This Pause On New LNG Approvals Sees The Climate Crisis As It Is: The Existential Threat Of Our Time’, Stated Biden In An Official Speech.

Significant Impacts Of LNG Exports

Election Campaign And LNG Exports

Climate Crisis And Pause In LNG Exports

And What Does This Mean For Brazil

Influence Of Global LNG Exports On Energy Costs

DoE Approval And License Analyses

Return Of Exports And Additional LNG Capacity

Liquefied Natural Gas (LNG) And Impacts On Supply Security

International Prices And Biases In The LNG Market

Wood Mackenzie And Financial Analysis Of LNG Exports

Distribution Of Natural Gas And LNG Importing Countries

 

Source: EPBR

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Paulo Nogueira

Eletrotécnica formado em umas das instituições de ensino técnico do país, o Instituto Federal Fluminense - IFF ( Antigo CEFET), atuei diversos anos na áreas de petróleo e gás offshore, energia e construção. Hoje com mais de 8 mil publicações em revistas e blogs online sobre o setor de energia, o foco é prover informações em tempo real do mercado de empregabilidade do Brasil, macro e micro economia e empreendedorismo. Para dúvidas, sugestões e correções, entre em contato no e-mail informe@en.clickpetroleoegas.com.br. Vale lembrar que não aceitamos currículos neste contato.

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