TotalEnergies CEO Raises Concerns Over U.S. LNG Project Surplus

CEO of TotalEnergies, Patrick Pouyanne, doubts the viability of all U.S. LNG projects due to challenges in securing long-term buyers and financing. His concerns include the potential market glut and the influence of political motives over economic incentives in securing Asian buyers.

TotalEnergies CEO Patrick Pouyanne voiced skepticism regarding the feasibility of numerous U.S. LNG projects despite their regulatory approvals. Pouyanne highlights the challenge of securing long-term buyers and necessary financing as key hurdles.

His warnings focus on the risk of an oversupply in the LNG market if all proposed U.S. plants come online, echoing previous concerns about exaggerated expansion in the sector.

Pouyanne also noted that political motivations, particularly President Trump's influence to diminish trade deficits, are driving some Asian countries to purchase U.S. LNG, rather than purely economic considerations.

(With inputs from agencies.)