Seeking Alpha

Cheniere CEO says U.S. gas can't liberate Europe from Russian hold

  • Cheniere Energy (LNG) CEO Charif Souki says the ability of U.S. energy to save Europe from its dependence on Russian gas has been overstated, partly because he believes only six to eight out of 24 proposed U.S. export projects ever have a chance to be completed.
  • LNG's own terminal, Sabine Pass in Louisiana - the only project approved for export so far by U.S. regulators - is due to export its first liquefied natural gas towards the end of 2015; at full capacity, it will send out 2.2B cf/day of gas, but Europe’s daily consumption is 40B-50B cf/day, Souki says.
  • Cheniere has signed contracts to sell gas to various European companies, but Souki says he has no control over where those customers would sell that gas; "I'm sure they will be opportunistic," he says.
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Comments (6)
  • omarbradley
    , contributor
    Comments (966) | Send Message
    Again "Europe already has the Netherlands." And of course Denmark and Norway.


    Also you need to be very specific about "what is Europe." France and Spain's natural gas needs are pretty much nil.


    Also you have a massive offshore natural gas field in the Eastern Med. Of course NATO and the US Navy will need to secure those fields as that neighborhood has become very dangerous all of a sudden.


    And of course there is Libya and Algeria. I think Russia is the one with the problem not Europe. As Saudi Arabia discovered after their oil embargo "in the end it was Saudi Arabia that paid the price."


    I think Russia is in a far more precarious position because it is actually threatening Europe militarily. I simply cannot begin to understand why President Putin would do such a thing.


    10 Apr 2014, 07:56 PM Reply Like
  • Ajayyy
    , contributor
    Comments (331) | Send Message
    Russia won't do anything. This is false bravado.


    After so many years of being ignored and not taken seriously. Russia is just being a diva and enjoying its 15 mins of fame. Threatening a crippled Ukraine is one thing. Threatening Europe and hurting Russia's own energy export driven economy is something else entirely. It will just ruin Putin's popularity and Putin will not do anything that damages his popularity.


    If anything we should be more concerned about Ukraine destroying those pipelines just to spite Russia. That infrastructure will take years to rebuild.
    10 Apr 2014, 08:58 PM Reply Like
  • gpag0nz
    , contributor
    Comments (4) | Send Message
    Just cover the Ukraine and Europe can take care of itself. Russia needs the sales and it will do its best to by-pass the Ukraine
    10 Apr 2014, 08:58 PM Reply Like
  • fishluvrain
    , contributor
    Comments (456) | Send Message
    This current situation should go a long way to push an Israeli and Cyprus gas pipeline to the European mainland. False bravado or not Europe can not remain at the whim's of Russia.
    10 Apr 2014, 09:57 PM Reply Like
  • blam24
    , contributor
    Comments (95) | Send Message
    The last thing that Putin and Russia wants is to have Obama agree to aggressively approve and pursue US exports of LNG and oil to Europe. That would absolutely have a negative bearing on Russia's high Natural gas and oil prices to those countries. Putin clearly enjoys being on the world stage but he is not stupid about the repercussions of his actions if he pushes too far.
    11 Apr 2014, 01:48 PM Reply Like
  • buck1957
    , contributor
    Comments (40) | Send Message
    Cheniere Energy (LNG) CEO Charif Souki has made me a ton of dough betwee cqp and lng if he say's 6 out of 24 I'd bet he is pretty close. The new symbol (cqh) is doing a steady climb also. I have a hard time with the relationship between the three symbols but sure like the graphs on all three. I would sure be curious to have a beer with Souki and talk about everything but Cheniere . I think he could have some great insight on a lot of interesting subjects.
    12 Apr 2014, 07:23 PM Reply Like
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