France’s Engie delays decision on buying $7b of US LNG

Bloomberg

One of France’s biggest energy companies has delayed a decision on a $7 billion deal to import liquefied natural gas (LNG) from the US after pressure from the government in Paris to seek cleaner supplies of the fuel.
Engie SA said it has postponed work on a contract to take LNG from NextDecade Corp’s operation, which is fed by shale gas fields using controversial fracking technology. The contract would run through 2045 and is key to launch construction of the US firm’s Rio Grande LNG export terminal in Texas, according to the pressure group Les Amis de la Terre.
Engie’s board has decided to consider a potential contract with NextDecade at a later stage as it needs a “deeper” examination, said a spokesperson for the utility. She declined to elaborate on the postponement.
The delay is the latest example of additional scrutiny of the pollution coming from the natural gas and LNG industry. Once touted as a bridge fuel to smooth the transition away from coal, gas increasingly
is being targeted by environmental pressure groups and governments for its contribution to climate-damaging greenhouse gases.
Earlier this month, Les Amis de la Terre France, an environmental group, urged Engie not to sign the contract with NextDecade, blaming US shale gas for environmental and sanitary disasters.
The French government owns a 23.6% stake in Engie and has asked the company to refrain from signing the contract on pollution concerns, people familiar with the
matter told Bloomberg. A spokesperson for the French finance ministry declined to comment on the issue.