LNG supply delayed to ’27 – TotalEnergies

The next major wave of liquefied natural gas (LNG) supply is now expected in 2027, two years later than previously forecast, due to project delays, according to TotalEnergies’ Senior Vice President for LNG, Gregory Joffroy.

Speaking at Asia Gas Markets conference on Tuesday, Joffroy noted “On the mid-term (outlook), we see some LNG projects that were due to come onstream in the coming months have been delayed. The exact start date will impact the gas balances and supplies,”

Factors contributing to the delays include skilled labour shortages, rising inflation due to wage growth, and equipment supply issues, particularly in the US, and President Joe Biden’s January pause on new LNG export project approvals that has added uncertainty.

In the long-term, Joffroy said a new supply wave is expected between 2027 and 2030, and he foresees LNG demand growing by 2035, as utilities switch from coal to gas-fired power generation and renewable energy development advances.

“With the development of renewables, people need a solution to resolve intermittency issues, and gas is a perfect solution.” he added.

Attribution: Reuters

Subediting: M. S. Salama