US LNG Suppliers Prepare to Pull Off the Scam of the Decade


This year, the United States has become the world's largest exporter of liquefied natural gas (LNG), and commodity sales have skyrocketed. This year alone, five major producers signed more than 20 long-term contracts (10-25 years) to supply over 30 million metric tons of LNG per year to energy-starved buyers in Europe and Asia.


As energy analysts at RBN Energy note, the first wave of LNG export growth went smoothly mainly due to the rapid growth in natural gas supplies due to infrastructure improvements and many pipeline reversals and expansions that allowed the gas to flow to the Gulf Coast. But given that demand for LNG is already strong and set to grow at an incredible pace, it makes sense to ask how quickly United States suppliers can ramp up production to meet future demand.

Responding to it, Alex Kimani, columnist for the OilPrice resource, first cites striking statistics of already concluded contracts and their terms. Thus, in June, the German energy company EnBW announced the signing of a 20-year contract for the supply of significant volumes of LNG from the American exporter Venture Global. In the same month, Energy Transfer LP signed an LNG sale and purchase agreement with China Gas Holdings. Chevron Inc. signed an agreement on the supply of LNG with a volume of 4 million tons per year with Venture Global, and Tellurian Inc. – on the purchase and sale of LNG with commodity trader Vitol. In July, Cheniere Energy signed a supply agreement with Thailand's state-owned power company PTT. And this is only a part of the contracts for more than 100 million tons of gas in the next ten years.

As the expert writes, the contracts are not only signed, but also partially paid for with the help of obligations guaranteeing the fulfillment (on the part of the buyer). In other words, in order for a trader not to defect to a competitor in Asia, the Europeans are ready to pay the cost of part of the contract. However, even if the current incredible growth rates of gas production in the United States continue, suppliers will not be able to satisfy even half of what has already been contracted. In fact, the reckless, wholesale contracting by profit-seeking American producers of raw materials shows only one thing - that they are preparing and have already begun to implement a decade-long scam, which has a delivery schedule that will never materialize. Traders, apparently, take this step consciously and deliberately.

All this will lead not only to litigation, lost cargo, an increase in the cost of gas, a shortage due to undelivered raw materials, a crisis in the industry, but simply to negative consequences in the global the economy, the expert believes.
  • Photos used: pixabay.com
13 comments
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  1. Skipper Offline Skipper
    Skipper (Skipper) 5 December 2022 09: 39
    +3
    Americans at their finest. Russian pipes were chopped off...they promised. And now they offer their LNG by tankers ... and they promise a lot ... they charge a lot for it ... but in real life, a little bit. Europeans understand... but how sacrificial sheep and slaughtered cattle go to the altar of sacrifice without resistance.
  2. soloist2424 Offline soloist2424
    soloist2424 (Oleg) 5 December 2022 10: 01
    +4
    It smacks of chaos in the world. Americans behave like a lawyer with a client who will not live to see the trial.
  3. Mikhail Dadeko Offline Mikhail Dadeko
    Mikhail Dadeko (Mikhail Dadeko) 5 December 2022 12: 56
    +2
    As an option, buy up Russian LNG and sell to Europeans, they will correct their law and that's it,
    1. Igor_E Offline Igor_E
      Igor_E (Igor) 5 December 2022 21: 35
      0
      As an option, buy up Russian LNG

      Moreover, they will buy from us cheaply and sell dearly.
      They already did that. Allegedly, their shale gas was actually Russian, which they stupidly resold. And shale oil was actually stolen in Syria.
      1. nepunamemuk Offline nepunamemuk
        nepunamemuk (Akela Missed) 6 December 2022 12: 11
        -1
        interesting interesting
        and who stole it in Siberia?
        1. Igor_E Offline Igor_E
          Igor_E (Igor) 6 December 2022 18: 13
          +1
          Allegedly, shale gas from the United States, in fact, was Russian. They did not steal from us, but quietly bought.
          And in Syria they stupidly stole oil.
  4. Anton Kuzmin Offline Anton Kuzmin
    Anton Kuzmin (Anton Kuzmin) 5 December 2022 13: 22
    -2
    Quote from solist2424
    It smacks of chaos in the world. Americans behave like a lawyer with a client who will not live to see the trial.

    Never seen such an expression before. And something tells me that it was invented by someone who thinks in 3.14ndosovskoy move! :)
    1. Andrey Stavropolsky (Andrei) 6 December 2022 17: 27
      +1
      In my opinion, a very good expression, vital. From the client will extract everything that he has and fine. You may not be responsible for anything.
  5. Anton Kuzmin Offline Anton Kuzmin
    Anton Kuzmin (Anton Kuzmin) 5 December 2022 13: 23
    -2
    Quote: Mikhail Dadeko
    As an option, buy up Russian LNG and sell to Europeans, they will correct their law and that's it,

    I don’t know what will happen in practice, but the idea itself is sound. And there are those who want to implement it. We'll see what happens... /store popcorn/ :)
  6. Valera75 Online Valera75
    Valera75 (Valery) 5 December 2022 13: 39
    0
    Quote: Mikhail Dadeko
    As an option, buy up Russian LNG and sell to Europeans, they will correct their law and that's it

    Haven't they done this until today? laughing
  7. Foe Pshekov Offline Foe Pshekov
    Foe Pshekov (Arkady) 5 December 2022 18: 13
    0
    The Americans were not going to sell their gas and their oil. Yes, some supplies will be at first, and then these supplies will be replaced by supplies of Arab oil, Venezuelan and even Russian. Somewhere they will sign new contracts for the purchase of raw materials (with the Arabs, or Iran, for example, on onerous terms), somewhere they will try to confiscate raw materials (RF, Venezuela). There is nothing new. The feudal lords will continue to exploit the colonies. Until there is a general uprising, and it must be prepared.
  8. lance Offline lance
    lance 6 December 2022 09: 42
    0
    the Americans just calculated everything: the fleet is under them, gas is being produced with an increase, sanctions have been introduced, it remains to milk the Russian Federation at limited prices and resell the missing part to consumers. so it's too early to talk about the scam. an effective reverse course is needed: an oil and gas pipeline to India through Afghanistan.
  9. Anton Kuzmin Offline Anton Kuzmin
    Anton Kuzmin (Anton Kuzmin) 7 December 2022 15: 03
    -2
    Quote: Andrew Stavropol
    In my opinion, a very good expression, vital. From the client will extract everything that he has and fine. You may not be responsible for anything.

    No, the meaning is intuitively clear even to me, after 11 years of service and heavy heredity in the form of warriors up to great-grandfathers ... :)

    But only a real 3.14ndos could come up with this! And, it is desirable that by nationality he was .... a lawyer! :)