Asian demand to drive Cheniere Energy LNG shipments

Cheniere Energy expects to ship more liquefied natural gas (LNG) to Asia this year, with European customers accounting for the lion's share of its cargoes in 2022.

Last year, the largest U.S. exporter of liquefied natural gas shipped 638 cargoes, a little more than 70 percent of which were destined for Europe, Chief Operating Officer Corey Grindal said at the CERAWeek energy conference.

Cheniere last year approved an expansion of its liquefaction plant in Corpus Christi, Texas, and is seeking early environmental review from federal regulators of an expansion of its Sabine Pass, Louisiana, plant, according to officials.

Construction of the company's and others' LNG plants on the U.S. Gulf Coast is putting pressure on existing gas transportation and storage infrastructure. In some states, including Louisiana, continued infrastructure expansion is necessary, Grindal said.

Cheniere Chief Executive Jack Fusco said just over 50 percent of the company's customers were European companies, ensuring the company would continue to maintain a balance between Asian and European markets. He added that if producers, including Cheniere, continue to sign long-term contracts with customers, the amount of natural gas from the largest production country coming back to the market does not matter. Cheniere's long-term clients have grown from 12 to 30.

Executives said Europe was building an infrastructure for long-term imports of liquefied natural gas, reducing its reliance on pipeline gas.

However, the US will need further development to meet future needs.

Licensing reform is needed in the country, Fusco said. He was referring to the red tape that often leads to delays and bottlenecks in LNG capacity expansion.

The company's proposed expansion will increase LNG capacity by 30 million tons per year.

Cheniere is studying the Federal Energy Regulatory Commission's (FERC) request for rival Freeport LNG to restart its fire-damaged facilities in Texas. The purpose of the monitoring, executives said, is to ensure their facilities meet all of FERC's standards.