USLNG Pause’s Effects Felt in Mexico

Biden LNG Permit Pause Clouding Outlook for Mexico Export Projects

Andrew Baker (June 28): The Biden administration’s pause on new approvals for USLNG exports to non-FTA countries is casting doubt over some future liquefaction projects in Mexico that would rely on U.S. feed gas. This includes Sempra’s 3.25 mtpa ECA Phase 1 project and NFE’s FLNG 1. However, nearly all other planned liquefaction projects in Mexico could be impacted by Biden’s permit pause as well. Four of these projects have secured non-FTA export approval from DOE, but may not have enough time to secure financing, get built, and send out their first cargoes. The pause has not affected extension requests, but the DOE has made it harder to obtain extensions. Projects must be under construction and demonstrate extenuating circumstances, which do not include the Covid-19 pandemic. The pause has been criticized by industry figures, who argue that North America has enormous resources and can produce natural gas cleanly and cost-efficiently. Link to Content

Photo Courtesy of NGI

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