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Cheniere Energy (NYSE:LNG) said on Monday that it expects to ship more LNG to Asia this year, after delivering ~70% of LNG cargoes to Europe in 2022.
Watching Cheniere (LNG) has extended its long-term customers from 12 to 30, it doesn’t matter how much Russian gas returns to the market if producers, including Cheniere, continue to sign long-term contracts with customers, CEO Jack Fusco said at the CERAWeek energy conference in Houston.
China will no longer act as a “relief valve” by supplying LNG to Europe as it did during last year’s energy crisis and may instead take flows from the mainland to serve its own growing economy, Cheniere executives said. (LNG).
Fusco called the lack of US investment in natural gas pipelines “scary,” noting that last year was the lowest year for pipeline infrastructure construction in the US since 1995.
Europe is adding the infrastructure needed to import LNG in the long term, reducing its reliance on the Russian pipeline, but the US will need more development to meet future demand, Fusco said.
Southwestern Louisiana used to be the “easy button” for building pipelines, but infrastructure there and in the US in general has not kept up with the fast pace of the country’s gas exports, chief business officer Anatol Feygin said.
But material and financing costs have increased the fixed liquefaction fees required to support new US LNG export infrastructure to $2s/MMBtu, up from a range of $2.00-$2.25 less than a year ago. year, Fusco said.
Cheniere Energy (LNG)’s “valuation is relatively high given its significant level of debt and its huge related losses,” writes Harrison Schwartz in an analysis recently published in Seeking Alpha.