Energy affordability, supply security critical since Russia’s invasion of Ukraine

VANCOUVER, July 11 – Russia’s February 2022 invasion of Ukraine has prompted ongoing discussions of energy affordability and supply security, the CEO of industry lobby group Natural Gas Supply Association told a session on the first day of the LNG2023 Conference.

“There are a lot of balls in the air and they are all important,” Dena Wiggins said.   

Global natural gas supply has come “roaring back” since COVID restrictions have eased, with the US leading the way with near-record levels of production.

And while regulatory blockades still stand in the way of the infrastructure required to support LNG export growth, recent promises in US legislation to speed the permitting process may offer some relief.

Meantime, traditional sources of LNG financing are increasingly turning to renewables, like solar and offshore wind, but some continue to fund LNG infrastructure projects, said Chris Buckingham, director, project finance Americas for MUFG Bank. He also noted that some financial institutions that had withdrawn from financing pipelines and other LNG infrastructure because of concerns about fossil fuels are beginning to return to the market, but not in the numbers that left. 

And while ESG metrics are becoming increasingly important in attracting financing, that in itself is not enough, said Dan Brouillette, former US energy secretary and now president of Sempra Infrastructure.

“They [financiers] are looking for low-carbon, high-value projects.”