The European Union is planning to switch to green energy and is signing few long-term contracts for LNG. This puts many U.S. liquefied natural gas projects into question. Several heads of U.S. companies stated this at once.

The European Union is trying to move away from Russian gas, but does not enter into large long-term contracts with U.S. LNG producers. This limits the possibility of investing into new projects on liquefied gas, told Bloomberg TV the head of Chevron Mike Wirth. He noted that projects need financing, and banks provide it under long-term contracts. European consumers, on their part, want an agreement for several years.

This situation was also stated in other U.S. companies.

“European buyers are afraid of their governments telling them not to buy 15 to 20 years ahead,” Chesapeake Energy CEO Nick Dell’Osso told The Financial Times.

The publication cites the example of Commonwealth LNG, which is trying to find customers for its project in Louisiana.

“Is it popular in Europe to come to us and get a 20-year deal … The answer is no. Politically, it’s a deadline for Europe to switch to an emissions-free economy,” head Paul Varello told The Financial Times.

Last year, the White House and the European Commission agreed to increase U.S. LNG supplies to the EU and U.S. exports increased. However, it will no longer be able to grow as fast over the next few years.

According to RonhEnergy, gas supplies to U.S. LNG plants reached 370 million cubic meters per day on March 2. The launch of Freeport LNG after the June fire adds to the growth. The project has reached more than half of its capacity of 35 million out of about 60 million.

In accordance with the US Information Administration, the designed maximum capacity of the five LNG plants is about 380 million cubic meters per day. However, the real capacity can grow up to 400 million cubic meters (146 billion cubic meters).

At the same time, almost no new capacities are planned in the USA this year. Only low-tonnage Calcasieu Pass capacity of 8 billion cubic meters is in the launch stage.

New projects Golden Pass with 18 million tons (25 billion cubic meters) and Plaquemines LNG with 13 million tons (18 billion cubic meters) will be launched only since 2024.

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