After the attack on Qatari facilities, various parties are turning to seek long-term contracts with the American side. The stock prices of US LNG suppliers are rising.
After the shutdown of the Qatar liquefied natural gas plant, more buyers are turning to American suppliers.
On Thursday, a major liquefied natural gas facility in Qatar was hit by the latest attack, further exacerbating the global tightness in LNG supply, with more and more buyers and importers turning to the United States to ensure access to liquefied natural gas. According to sources, companies interested in importing LNG have been in direct contact with US fuel distributors, including producers and long-term contract buyers. Sources said that the supply from these distributors would come from existing projects and projects under construction.
The United States is the largest LNG exporter in the world, and plans to further expand its export capacity through the planning or construction of multiple projects. Discussions on the potential supply of US LNG are still in the early stages, and negotiations for any long-term contracts will take time.
On Thursday, shares of several US LNG producers rose, with Cheniere (LNG.US) up nearly 6%, EQT Corporation (EQT.US) and Expand Energy (EXE.US) up nearly 2%.
The Iran conflict and the shutdown of the Qatar plant have caused natural gas prices to soar in Europe and Asia, while prices in the US have only slightly increased, as existing LNG facilities are operating at or near full capacity with ample shale gas production.
The Iran missile strikes began on Wednesday night, targeting the Ras Laffan liquefied natural gas plant in Qatar, the world's largest LNG production facility. The attacks damaged two LNG production lines. Qatar Energy Corporation stated in a release that repairs could take up to five years, and Qatar announced that its natural gas supply was affected by long-term force majeure, resulting in an estimated annual loss of $20 billion in revenue. In early March, production at the plant was halted after a strike.
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