However, US gas executives claim that purchasers have mostly been unwilling to commit to new, long-term supply agreements that are necessary to support a new wave of project development on the Gulf of Mexico that would substantially increase production in the ensuing years.According to Nick Dell’Osso, CEO of Chesapeake Energy, one of the biggest US gas producers, [European] customers are afraid of their governments telling them they can’t buy hydrocarbons 15 or 20 years from now.
Things are currently a little at loggerheads, he said.
Source: WIONPaul Varello, chief executive of Commonwealth LNG, said he was having trouble locating willing European consumers for his company’s proposed export terminal in Louisiana on the US Gulf Coast.The answer is no, he replied, Is it popular in Europe to come to Commonwealth LNG and make a 20-year deal? It is simply too near to their 2050 carbon-neutral aspirations politically.
According to Varello, the long-term contracts, which can be worth billions of euros over many years, were essential to obtaining bank financing to pay the monstrous cost of constructing new LNG plants.
Europeans are still primarily concerned with meeting their energy demands for the foreseeable future, which creates a mismatch with US LNG producers who require substantial amounts of energy.
What are your views on this issue? Please comment down below.
US businesses claim that EU climate targets are preventing new gas agreements
By tirupatinews
