Developing World Won’t Completely Entrust Energy Security to the US, Says Cheniere Energy’s CFO

Developing world won’t completely entrust energy security to the US, says Cheniere Energy’s CFO

Cheniere Energy does not expect developing countries to rely solely on the U.S. for their energy security, its Chief Financial Officer, Zach Davis, said on Tuesday. “I don’t see many countries in the developing world, especially at this moment in time, trusting 100% of their energy security to the U.S.,” Davis told an engineering, procurement and construction conference in Houston.

His comments came as details started to emerge of an interim deal to end the U.S.-Iran war and reopen the Strait of Hormuz, a key waterway that carried roughly 20% of global oil and gas supplies before it was blocked off by the conflict earlier this year. Qatar’s LNG exports, which flow through the strait, have been severely disrupted since.

Davis said diversification of liquefied natural gas supply is critical for emerging economies, helping ensure affordability and reduce risks to supply. He added that Qatar plays an important role in global LNG markets and said Cheniere would welcome its fuller return, as it would enhance supply diversity.

Qatar’s LNG is typically priced against Brent crude, unlike U.S. cargoes which are linked to Henry Hub gas prices, offering buyers a wider range of pricing options, Davis said.

Cheniere, the largest LNG exporter in the U.S. and the world’s second-largest producer, is prioritizing long-term demand growth over short-term gains from elevated LNG prices, he added.

“Creating demand is more important than capturing margins in the current price environment,” Davis said.

He said the company remains disciplined in its expansion strategy, focusing on shareholder value rather than scale.

While Cheniere has the financial capacity to fund a $20 billion expansion, it has opted to approve a smaller, roughly $6 billion expansion at its Sabine Pass facility.

“We’re focused on creating value, not chasing the title of the world’s largest LNG company,” Davis said.

(Reporting by Curtis Williams in Houston; Editing by Chizu Nomiyama and Nathan Crooks and Aurora Ellis)