The situation in the Middle East shows the need for diversity in energy supplies, Jack Fusco, CEO of Cheniere Energy, the nation’s largest U.S. liquefied natural gas exporter, said on Monday in Houston. The U.S.-Israeli war on Iran has throttled energy exports from the Middle East Gulf’s Strait of Hormuz, a key transit point for a fifth of the world’s oil and gas supply. Oil and gas prices have soared, as it may be months before supply issues are fully solved. The company’s CFO Zach Davis told reporters at the CERAWeek conference in Houston that Cheniere has been running its plant above its stated maximum capacity and is unable to produce any more LNG until new production facilities come online later this year. The company is considering pushing back some maintenance to the autumn instead of in the spring to meet demand, Davis added. Supply has become more strained worldwide following both the effective closure on the Strait of Hormuz and Iranian attacks on Qatar, which produces a fifth of the world’s liquefied natural gas, that knocked out roughly 17% of its supply.
Cheniere expects to deliver more cargoes to Asia this year and less to Europe; overall last year it exported 51 million metric tons of LNG, mostly to Europe.
(Reporting by Curtis Williams; Editing by Simon Webb)