The Biden administration’s pause on new licenses for liquefied natural gas exporters is already stalling progress for projects that were aiming to come online later this decade.
Several LNG buyers have delayed signing new long-term contracts with US producers until there is more clarity, according to people with knowledge of the matter. Malaysian state oil and gas company Petroliam Nasional Bhd. is in talks with Cheniere Energy Inc. and other firms, but is reluctant to commit until licenses are approved, said the people, who didn’t want to be named due to the sensitivity of discussions.
Jera Co. in Japan and at least two China-based firms, are also scrutinizing US projects more closely before moving forward with negotiations, the people said. Jera and Petronas didn’t immediately respond to requests for comment.
The US — the world’s biggest exporter of the power-station and heating fuel last year — stopped approving new licenses in January to study the potential effects of increased gas production and exports on climate change, the economy and national security. The process could last months, a Department of Energy official said last week, making it tough for American producers who need to lock-in deals before they can get financing from banks.
Venture Global LNG Inc.’s upcoming CP2 project in Louisiana doesn’t have the required approvals to move forward and is at risk of pushing back its final investment decision, a necessary step before major…
