French power company Engie SA has halted negotiations on a multibillion-dollar contract to import U.S. liquefied natural gas, raising alarms in the Am
French power company Engie SA has halted negotiations on a multibillion-dollar contract to import U.S. liquefied natural gas, raising alarms in the American energy industry that environmental concerns could limit the foreign market for the fuel.
Engie didn’t provide details about the proposed LNG deal with NextDecade Corp. , which was reportedly a $7 billion, 20-year contract, or the reason it canceled talks with the Houston-based exporter.
Last month, Politico and French news outlet La Lettre A reported that the French government, which owns about 24% of Engie, had pushed Engie to delay or cancel the deal over concerns about the environmental and climate impact of fracking, and related emissions of methane, a potent greenhouse gas.
France’s Ministry of the Economy and Finance didn’t immediately respond to a request for comment.
NextDecade is courting potential customers for its proposed Rio Grande LNG export facility in Brownsville, Texas, which it has said could have the capacity to export 27 million metric tons of LNG a year. NextDecade, which is planning to make an investment decision on the project next year, declined to provide details about its commercial negotiations.