Alexey Gromov, Principal Director on Energy studies at the Institute for Energy and Finance, commented on the Neft and Capital Internet portal on the US decision to lift restrictions on LNG exports and imports.
According to Alexey Gromov, with this decision, the US authorities ensure the flexibility of their LNG export and import policies. This frees the hands at the legislative level in the segment of LNG production and consumption with additional adjustments to meet their current needs.
Trump wants to ensure maximum flexibility in the LNG trade policy. Ideally, this can reduce the effect of increasing gas prices within the United States, because different states can import LNG situationally, eliminating the risks of product shortages."At some point, it will be profitable to export liquefied natural gas, and at certain points, on the contrary, to buy it massively from abroad in order to balance supply and demand in own market and take advantage of low prices on the global LNG market in time. For example, Washington has obliged Europe to buy LNG from the United States in the long term. But at some point in the market, its price from other regions is much lower than usual. In this case, American companies will sell LNG to the EU at a premium, and they will buy it from other suppliers at discounted prices," the expert explained in a commentary for NIK.
"The US government is trying to regulate the price of gas based on market principles within the country, while not eliminating opportunities for exporting LNG and taking into account the fact that demand for gas in America is growing," Alexey Gromov believes.
Subscribe for updates
and be the first to know about new publications