APPEC-LNG buyers flag US supply risks after export pause
After President Joe Biden’s administration halted export permits of supercooled fuel to non-Free Trade Agreement nations, major buyers of liquefied Natural Gas (LNG), flagged the risks of purchasing cargoes of the United States.
In response to a query on the impact of U.S. exports pause, officials from Taiwan's CPC Corp. and Germany's SEFE, who trade LNG cargoes, and sell in Asia, stressed reliability of supply.
Jane Liao (VP of CPC) said at the APPEC Conference that she trusted the traditional LNG providers more than the U.S. LNG companies.
"Most Asian buyers rely on our traditional LNG suppliers who value long-term relationships more. "When you have problems with the implementation of your agreement, people will come and talk to you," she said.
Fabian Kor is the executive vice president of SEFE in Asia. He said that energy security was SEFE's top priority for this year. SEFE might even "slightly" overcontract to ensure availability.
He said: "We won't focus on the supply just because it's the cheapest. We prefer a little geographical diversification in our supply."
"In terms the U.S. we are quite ambivalent, which means we prefer something more firm."
Liao said that Chinese and Indian purchases would help to maintain the balance of the market.
She said: "Let's assume that the Chinese or Indian companies continue to buy from Russia. They won't be able to compete with us on the rest of the markets." (Reporting and writing by Emily Chow, Gabrielle Ng and Sudarshan Varadan; editing by Tom Hogue and Jacqueline Wong).
(source: Reuters)
