(MENAFN) The recent decision by the Biden administration to temporarily halt approvals for new liquefied natural gas (LNG) export terminals is raising significant concerns among energy industry leaders. Shell CEO Wael Sawan, in an interview with the Financial Times, expressed worries about the impact of the decision on the industry's long-term confidence. Sawan emphasized that while the decision may not immediately affect LNG supply, it could erode trust in the sector over time.
Shell, a major player in the global energy market and the second-largest LNG shipper worldwide, is currently entangled in a legal dispute with United States exporter Venture Global LNG. The dispute, involving allegations of Venture Global refusing to honor a multibillion-dollar supply contract, adds complexity to the challenges faced by the industry.
The Shell CEO pointed out that Biden's decision, coupled with concerns about Venture Global not honoring contracts, raises questions about the stability and security of LNG from the United States. The move has drawn criticism from other energy leaders, including Kathy Mikells, Chief Financial Officer of ExxonMobil, who argued that such bans hinder efforts to transition energy-consuming nations away from coal.
Mikells emphasized that the decision means less United States-produced natural gas is available globally to replace coal, characterizing it as a detrimental development. Chevron CFO Pierre Breber echoed these sentiments, asserting that energy policy should transcend political considerations. Breber highlighted the positive aspects of United States LNG exports, emphasizing their role in job creation, trade balance improvement, and environmental benefits by replacing coal in various instances.
As industry leaders express concerns over the potential repercussions of Biden's decision, the broader debate over the future of LNG exports from the United States intensifies, bringing issues of economic, geopolitical, and environmental significance to the forefront.
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