The disruption to Qatar’s liquefied natural gas production from the ongoing U.S.-Israel war against Iran could give a boost to the next wave of U.S. gas export projects trying to get financed, according to industry analysts.
Projects that have been proposed but are still awaiting their sponsors’ final investment decisions could become more important the longer the Middle East conflict goes on, even after a succession of formal go-aheads last year for domestic gas export projects. The United States is the world’s largest exporter of LNG, roughly 10 years after the first cargo of U.S. LNG departed from the Lower 48 states.
One of those projects advanced Friday: Venture Global announced it would proceed with the second phase of its mammoth CP2 terminal in southwest Louisiana after it secured $8.6 billion in project financing. The facility is “a strategically important project to global energy supply and security,” Venture Global noted in a statement.
Qatar, which produces roughly one-fifth of the world’s LNG, said earlier this month it stopped production of the supercooled gas due to Iranian attacks on two operating facilities. QatarEnergy declared force majeure two days later. While it’s unknown how long Qatar’s LNG shutdown will ultimately last, the effective closure of the Strait of Hormuz is reupping discussions around supply security and how much U.S. LNG projects still trying to achieve final investment decisions may stand to benefit.
