Abu Dhabi backs $13bn US gas plant as Middle East supplies falter

{"text":[[{"start":9.05,"text":"Abu Dhabi has backed construction of a new $13bn liquefied natural gas plant in Louisiana, as concern over Middle East supply disruption spurs a fresh wave of US energy development."}],[{"start":22.8,"text":"US energy group Caturus will on Friday unveil funding commitments for Commonwealth LNG, a massive export facility in Cameron Parish, Louisiana, that can produce 9.5mn tonnes per year. "}],[{"start":36.05,"text":"The group has raised $9.75bn in project financing for construction of the plant in a move that underlines how US fossil fuels have become a critical strategic asset since the Iran war closed the Strait of Hormuz, a waterway through which a fifth of global oil and LNG flows. "}],[{"start":54.199999999999996,"text":"“The biggest shift that has occurred in the market today [due to the war] is in LNG,” said Ben Dell, managing partner of Kimmeridge and chair of Commonwealth LNG, in an interview."}],[{"start":65.39999999999999,"text":"“Buyers have to look for security of supply and they have to diversify, which has been driving them towards taking more US cargoes.”"}],[{"start":74.05,"text":"Caturus is backed by US investment group Kimmeridge and Mubadala Energy, a subsidiary of an Abu Dhabi sovereign wealth fund and Canada’s CPP Investments. Mubadala Energy contributed equity to the project financing for Commonwealth LNG along with CPP, BlackRock, Ares Management and EOC Partners."}],[{"start":95.55,"text":"Mubadala Energy’s investment is part of a surge of Middle East investment in US energy since Donald Trump promised to unleash “American energy dominance” in his second term in office. The project was the first to receive a vital export permit under the Trump administration and has been granted other crucial approvals from US authorities. "}],[{"start":116.65,"text":"Last month UAE state energy company Adnoc said it planned to invest tens of billions of dollars building a US natural gas business. In November Saudi Aramco announced 17 agreements with US companies with a potential value of more than $30bn. "}],[{"start":null,"text":"

"}],[{"start":132.35,"text":"Adnan Bu Fateem, chief operating officer of Mubadala Energy, told the FT the company’s investment in Caturus and financing of Commonwealth LNG was not driven by the Iran war but was a “long-term investment in one of the world’s most dynamic energy markets”."}],[{"start":148.6,"text":"“We have noticed that the US is expanding its position as a global leader in LNG. So, it makes perfect sense for a company like Mubadala Energy to have a position on this market,” he said. "}],[{"start":159.65,"text":"US LNG export capacity is forecast to double to 241mn tonnes by 2035, according to an analysis of projects that have reached final investment decisions, according to research firm Rapidan Energy Group. "}],[{"start":173.95000000000002,"text":"Several other projects, including Delfin LNG and Texas LNG, are awaiting final investment decisions and would push US capacity higher if they get approved."}],[{"start":null,"text":""}],[{"start":184.20000000000002,"text":"Alex Munton, analyst at Rapidan, said: “The war in the Middle East has knocked Qatar and UAE’s proposed LNG expansions sideways and removed about 80mn tonnes from the market currently.”"}],[{"start":195.45000000000002,"text":"“Russia is still sanctioned constrained, Australia is stagnating and Mozambique has challenges: so that leaves only the US to provide growth at scale.” "}],[{"start":205.50000000000003,"text":"Commonwealth LNG has signed long-term supply deals with multiple customers including Aramco Trading, Glencore, Mercuria and Petronas, which are expected to generate $3bn in annual export revenues when operations begin in 2030."}],[{"start":222.75000000000003,"text":"Caturus’s decision to invest in Commonwealth LNG follows the announcement in March by rival Venture Global of an $8.6bn expansion of its CP2 LNG plant, also located in Cameron Parish. "}],[{"start":237.30000000000004,"text":"US House of Representatives Speaker Mike Johnson, who represents Louisiana, said the project Commonwealth LNG would cement the state as the vanguard of “Republicans’ energy dominance agenda”. "}],[{"start":256.45000000000005,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1778833876_9085.mp3"}