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Cheniere CEO: Middle East situation calls for energy diversification

Jack 'Fusco, CEO of Cheniere Energy, the largest U.S. exporter of liquefied gas, stated on Monday that the situation in the Middle East shows a need for diversity in energy supplies. U.S. and Israeli war against Iran has slowed energy exports through the Strait of Hormuz in the Middle East Gulf, a major transit point for a quarter of the world's oil supply. Prices for oil and gas have increased, as it could be several months before the supply issue is resolved. CFO Zach Davis, told reporters in Houston at the CERAWeek Conference that Cheniere was running its plant over its maximum capacity. The company is not able to produce more LNG until later this year when new production facilities are online. Davis said that the company may delay some maintenance until the fall to meet the demand. The supply?has been strained globally following the?effective closure on the Strait of Hormuz as well as Iranian attacks against Qatar, which produced a 'fifth of world's liquefied gas.

Cheniere is expecting to ship'more cargoes this year to Asia and less to Europe. Last year, it exported 51,000,000 metric tons LNG, mostly to Europe.

(source: Reuters)