Cheniere Power, the most important US liquefied pure fuel exporter, is planning a serious growth at its flagship terminal on the Louisiana coast, aiming to capitalise on surging abroad power demand after Russia’s full-scale invasion of Ukraine.

The corporate mentioned on Thursday that it will launch the allowing course of so as to add 20 million tonnes per yr of fuel export capability at its Sabine Go LNG plant, up by 74 per cent from the power’s present capability of 27mn tonnes. Cheniere pioneered overseas gross sales of US LNG when it started exports from Sabine Go in 2016.

Cheniere’s formidable development plans are an indication of optimism from the US LNG trade {that a} growth in gasoline demand set off by Moscow curbing provides into Europe final yr is ready to persist for many years.

“The necessity for additional funding in LNG capability was once more laid naked final yr. Over the subsequent few a long time, each the provision and demand aspect traits are supportive of recent liquefaction infrastructure,” Anatol Feygin, Cheniere’s chief business officer, mentioned on a name with traders.

Cheniere didn’t present value estimates for the challenge, however at present development charges it will seemingly high $10bn. The Houston-based firm says it hopes to start out exporting from the brand new amenities by the tip of the last decade, and mentioned it may add carbon seize and storage capabilities to cut back the plant’s greenhouse fuel emissions.

Feygin mentioned that Cheniere was attempting to enroll “European and Asian consumers” for the challenge. Including capability to an present plant would give it a price benefit over different competing tasks, he mentioned.

US pure fuel costs have fallen almost 80 per cent from their highs final yr, largely as a result of a heat winter has weakened demand for warmth. Home US fuel manufacturing additionally stays sturdy.

Costs have traded nicely beneath fuel offered abroad, underscoring the attractiveness of US exports. The US benchmark fuel worth was buying and selling at about $2.28 per mn British thermal items on Thursday, in comparison with Europe’s important hub worth of about $16/mn Btu.

US President Joe Biden final yr struck a take care of European Fee president Ursula von der Leyen to encourage US exporters to maintain supplying the continent with pure fuel at larger volumes by way of to the tip of the last decade.

Nonetheless, the Biden administration is underneath mounting strain from local weather activists to not grant permits for brand new long-term oil and fuel tasks they argue will lock in carbon emissions for many years to come back. Cheniere must receive federal permits earlier than continuing with the growth.

Cheniere’s growth plans come as another US fuel executives have warned {that a} latest drop in Europe’s power costs and the continent’s local weather ambitions have cooled curiosity in new export tasks.

The US has the capability to export about 110mn tonnes of LNG a yr, and tasks at the moment underneath development are set to cement its standing because the world’s greatest exporter, with about 140mn tonnes of capability by 2025.

Rivals of Cheniere, together with Sempra Power and NextDecade, have already got permits and have lined up long-term clients for rival tasks. They hope to make last funding choices this yr that will add considerably to capability.

Wooden Mackenzie, a consultancy, says greater than $100bn may very well be ploughed into US LNG tasks over the subsequent 5 years.