Jack Fusco, CEO of Cheniere Energy Partners LP, recently pointed out that the liquefied natural gas market must maintain price stability and affordability; otherwise, industrial consumers may switch back to coal as an alternative energy source.
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Fusco emphasized that despite the ongoing global energy transition, price remains the core consideration for customers when choosing energy sources. If liquefied natural gas continues to fluctuate at high levels over the long term, its competitiveness compared to traditional energy sources will be weakened. Especially in the Asian market, some countries still maintain a large amount of coal-fired power generation capacity, and price-sensitive buyers are likely to return to coal under cost pressure. The head of the largest liquefied natural gas export company in the United States admitted that the industry needs to seek a balance between energy security and low-carbon goals. Current geopolitical risks and supply chain disruptions have caused gas prices to fluctuate dramatically several times. This uncertainty not only affects the signing of long-term contracts but also may delay the global decarbonization process.
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