backJoin King & Spalding and The Argentina-Texas Chamber of Commerce for a discussion on the various opportunities and challenges for Argentina as a result of the recent announcement made by the U.S. to pause approvals of LNG exports.
On January 26, 2024, U.S. President Biden announced a “pause” on approval of LNG exports from the United States, stating that the intent of the pause was to re-evaluate the economic and environmental impacts of these additional LNG exports. The pause affects projects constituting a near doubling of U.S. LNG export projects. Also, potential buyers of LNG affected by the pause face new challenges in contracting for long-term offtake from the U.S. While the LNG market will be adequately supplied into the late 2020s, new project approvals will be required in the next few years to supply the market starting 2030.
Argentina has an opportunity to fill a potential gap in long term LNG supply by moving quicky to develop its LNG export potential. The resources of the Vaca Muerta shale could respond to global demand in a way that U.S. LNG exports have over the past decade.