Bussiness
LNG buyers flag US supply risks of purchase after Biden pauses export
“Let’s say the Chinese companies or the Indian companies, they continue to purchase from Russia, so they won’t compete with us in the rest of the market,” she said Representational Picture Photo: Bloomberg
Major buyers of liquefied natural gas (LNG) flagged risks of purchasing cargoes from the United States following the decision by President Joe Biden’s administration to pause export permits of the superchilled fuel to non-Free Trade Agreement countries.
Officials from Taiwan’s CPC Corp and Germany-based SEFE, which trades LNG cargoes and sells in Asia, stressed the importance of reliability of supply while responding to a question on the impact of the US export pause on Asian markets.
“I do trust the traditional LNG suppliers more than US LNG players,” said Jane Liao, vice president at CPC, told the APPEC conference.
“Most of the Asian buyers, we rely on traditional LNG suppliers, which cherish the long-term relationship more. When you are in difficulties in the implementation of your contract, people will sit down and talk,” she said.
Fabian Kor, executive vice president Asia at SEFE, said energy security was the topmost priority this year, adding that SEFE may even “slightly overcontract” to ensure availability.
“We will not concentrate on supply, just because it is the cheapest in the U.S. We like a bit of geographical supply diversification,” he said.
“In terms of the US, we are quite ambivalent now, meaning we prefer something that is more firm.”
On supplies of Russian LNG, Liao also said Chinese and Indian purchases of Russian LNG cargoes would ensure the market remains in balance.
“Let’s say the Chinese companies or the Indian companies, they continue to purchase from Russia, so they won’t compete with us in the rest of the market,” she said.
First Published: Sep 11 2024 | 12:05 PM IST
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