Goldman Sachs expects no near-term impact on global gas supplies due to the potential approval for proposed U.S. liquefaction projects, as they would need government clearance as well as long-term contracts to go ahead, it said in a note on Monday.
President-elect Donald Trump’s team plans to roll out an energy package within days of his taking office that would approve export permits for new liquefied natural gas (LNG) projects, among a wide range of other measures.
Goldman Sachs analysts said the construction timelines imply no likely impact on U.S. or global gas balances before 2027 or later even under circumstances where the Department of Energy (DOE) approves the proposed LNG export projects.
“We reiterate our view that this approval is a necessary but not sufficient condition for new U.S. LNG export projects to come online.”
The approval for U.S. LNG export projects in the coming months would not change our long-term global LNG balances or price views, the bank said in the note.
Goldman Sachs currently expects U.S. LNG exports to more than double by 2030 to 189 million metric tons per annum (25 Bcf/d), increasing its share of global LNG supply by then to 31% from 22% as of now.
In addition to the already approved US LNG export facilities, the bank’s base case scenario includes two more projects, Venture Global’s CP2 and Cheniere Energy’s Corpus Stage 4, Goldman analysts said.
U.S. natural gas futures jumped about 8% to a one-year high on Monday on forecasts for colder weather, rising gas flows to LNG plants, and soaring global gas prices.
(Reporting by Rahul Paswan in Bengaluru; Editing by Sonali Paul)