Mike Sabel, CEO of Venture Global, Inc., the second-largest US liquefied natural gas exporter, stated at the Indo-Pacific Energy Security Ministerial Meeting and Business Forum in Tokyo that the global LNG price volatility caused by the Middle East crisis is "very short-term."
Approximately 20% of the global LNG supply is currently disrupted, with QatarEnergy's LNG facilities closed due to energy supply interruptions in the Middle East following actions by the US and Israel against Iran. Qatar's Energy Minister Saad al-Kaabi indicated last week that restoring normal supply could take several months.
"The market volatility is significant," Sabel said. "However, we believe this is only short-term. We are very optimistic about the medium-to-long-term strength of the market, its fairness, and the coming online of new supply. We expect LNG prices to remain stable over the long term."
Estimates show that the average price for LNG delivered to Northeast Asia in April was $19.50 per million British thermal units (mmBtu), down from $22.50/mmBtu the previous week, which was the highest level since mid-January 2023.
Industry sources estimate the delivery price for May at $18.90/mmBtu.
Venture Global, Inc. announced on Friday that it will continue advancing the second phase of its CP2 LNG project in Louisiana.
Sabel stated, "We will add 10 million tonnes of LNG on top of the 4 million tonnes from the first phase."
"We expect the first and second phases to begin initial energy production next year, which will soon have a significant impact on fuel market prices."
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