As tensions escalate, President Joe Biden and Putin will speak on Saturday, according to U.S. and Russian officials. The call will take place Saturday morning
Here is a preview of those discussions:
Higher oil prices are bound to boost LNG import costs for utilities and increase electricity rates💰
Most long-term LNG contracts are linked to crude
With Brent at $95/bbl, that means an LNG cargo is roughly $11-12/mmbtu. While that’s cheaper than spot LNG, it’s still pricey
To be sure...
“Our view is that we do not believe he has made any kind of final decision, or we don’t know that he has made any final decision,” said US National Security Advisor Jake Sullivan, referring to Russian President Vladimir Putin
UPDATE: US President Biden tried to send Putin an ultimatum about the consequences of a Ukraine invasion in a conversation that left both sides at an impasse
The Russian leader accused US of failing to provide security assurances he needs to back down
Japan solidified a plan to divert LNG to Europe on Ukraine tension, NHK says 🇯🇵
🚢 Japan to seek cooperation from its firms that have stakes in LNG export plants (after ensuring enough domestic supply)
🚢 Still determining volume/timing
While it’s still unlikely that Russia will cut supplies to Europe, its biggest customer, the continent would require far more than diverted LNG cargoes from Japan to make up the loss
Russia exported more than 1 and a half times Japan’s LNG imports to Europe and Turkey last year
The latest US LNG export terminal is preparing to load its first cargo 🇺🇸
🚢The Yiannis vessel arrived at Venture Global's Calcasieu Pass plant in Louisiana
🚢Facility began producing LNG last month, which will cement the US as the world's top exporter
Great reporting from @SergioChapa on this. He actually went to the LNG plant to take pictures of the vessel and confirm its arrival
Calcasieu Pass holds long-term supply deals with nine international buyers but will be able to sell cargoes made during its months-long startup process on the spot market
Those cargoes will most likely be sold to ease an unprecedented energy crisis in Europe
Qatar is upset that Japan isn’t renewing its LNG contracts
🇶🇦💥🇯🇵
🥊 “You’ll get no sympathy from us the next time you need LNG,” a Qatar official said to Japan in Dec
🥊 Jera let a giant 25-year contract with Qatar lapse last year
A new U.S. LNG export facility just started production, which will help cement the nation as the world's top exporter of the fuel 🇺🇸🎆🎉
Venture Global’s Calcasieu Pass facility in Louisiana produced its first LNG on Jan. 19, according to a FERC filing posted today
The US has been the world's top exporter of the fuel for the last two months as projects ramp-up output and Europe's energy crisis boosts overseas demand
New export projects will continue to ramp up production this year, cementing the US as the world's top LNG exporter through much of this decade
Out of the 101 U.S. LNG export cargoes in January, more than a third arrived at European ports, while five went to Latin American destinations and the rest remain in transit, shipping data compiled by Bloomberg shows
Gas-starved Europe has become a top destination for US LNG