-

KBRA Comments on the Implications of the EU Trade Agreement for U.S. LNG

NEW YORK--(BUSINESS WIRE)--As part of the European Union’s (EU) broader REPowerEU strategy to reduce dependence on Russian energy and under the terms of the recently announced U.S.-EU trade agreement, the EU has committed to purchasing $750 billion worth of U.S. energy over the next three years to meet demand. Abundant low-cost natural gas across the Permian, Eagle Ford, and Haynesville basins—combined with modest liquefaction fees and close proximity to liquefied natural gas (LNG) export facilities on the U.S. Gulf Coast (USGC)—continue to make U.S. LNG incredibly competitive. While there is currently no impact to KBRA’s portfolio of LNG export facilities due to their contracted nature, future projects could be affected if they seek to monetize merchant cash flows.

While the announcement is a positive development for U.S. natural gas producers, meeting export requirements at this scale presents significant challenges. In 2024, U.S. export capacity totaled 11.9 billion cubic feet per day (Bcf/d) across eight facilities, predominantly located along the USGC. The Department of Energy (DOE) has authorized a cumulative 55.3 Bcf/d of LNG exports as of June 30, 2025. Several export facilities currently under construction are expected to reach commercial operations date (COD) this year, with additional projects slated to reach COD later this decade. Further, up to eight U.S. LNG export facilities are anticipated to reach final investment decision (FID) by year-end 2025. While this additional capacity will support broader U.S. export goals, many of these facilities are already committed through letters of intent (LOI) or long-term contracts with international offtakers to secure financing. As a result, they are unlikely to have sufficient uncontracted capacity available to fulfill obligations under the recent trade agreement.

About KBRA

KBRA, one of the major credit rating agencies, is registered in the U.S., EU, and the UK. KBRA is recognized as a Qualified Rating Agency in Taiwan, and is also a Designated Rating Organization for structured finance ratings in Canada. As a full-service credit rating agency, investors can use KBRA ratings for regulatory capital purposes in multiple jurisdictions.

Doc ID: 1010640

Contacts

Adeeti Amin, Managing Director
+1 646-731-2332
adeeti.amin@kbra.com

Andrew Giudici, Global Head of Corporate, Project, and Infrastructure Finance
+1 646-731-2372
andrew.giudici@kbra.com

Ken Egan, Senior Director
+353 1 588 1275
ken.egan@kbra.com

William Cox, SMD, Global Head of Corporate, Financial and Government Ratings
+1 646-731-2472
william.cox@kbra.com

Media Contact

Adam Tempkin, Senior Director of Communications
+1 646-731-1347
adam.tempkin@kbra.com

Business Development Contact

Mark Lazarus, Senior Director
+1 312-680-4177
mark.lazarus@kbra.com

Kroll Bond Rating Agency, LLC

Details
Headquarters: New York City, New York
CEO: Jim Nadler
Employees: 400+
Organization: PRI

Release Versions

Contacts

Adeeti Amin, Managing Director
+1 646-731-2332
adeeti.amin@kbra.com

Andrew Giudici, Global Head of Corporate, Project, and Infrastructure Finance
+1 646-731-2372
andrew.giudici@kbra.com

Ken Egan, Senior Director
+353 1 588 1275
ken.egan@kbra.com

William Cox, SMD, Global Head of Corporate, Financial and Government Ratings
+1 646-731-2472
william.cox@kbra.com

Media Contact

Adam Tempkin, Senior Director of Communications
+1 646-731-1347
adam.tempkin@kbra.com

Business Development Contact

Mark Lazarus, Senior Director
+1 312-680-4177
mark.lazarus@kbra.com

Social Media Profiles
More News From Kroll Bond Rating Agency, LLC

KBRA Releases Research – CMBS Loan Performance Trends: July 2025

NEW YORK--(BUSINESS WIRE)--KBRA releases a report on U.S. commercial mortgage-backed securities (CMBS) loan performance trends observed in the July 2025 servicer reporting period. The delinquency rate among KBRA-rated U.S. private label commercial mortgage-backed securities (CMBS) in July increased to 7.5% from 7.3% in June. However, the total delinquent plus current but specially serviced loan rate (collectively, the distress rate) only increased 7 basis points (bps) to 10.6%. The conduit mixe...

KBRA Releases Research – Dutch Housing Market Update: Resilience Amid Regulatory Realignment

NEW YORK--(BUSINESS WIRE)--House prices in the Netherlands have reached record highs, defying expectations that the post-pandemic surge would taper off amid steep interest rate hikes from 2022 to 2023 aimed at curbing inflation. Fears of demand falling off have proven unfounded, as the housing market continues to show resilience. Interest rates are gradually declining from their recent highs, while a strong economy and tight labour market have helped offset affordability concerns. Further, the...

KBRA Releases Research – Dutch Housing Market Update: Resilience Amid Regulatory Realignment

NEW YORK--(BUSINESS WIRE)--House prices in the Netherlands have reached record highs, defying expectations that the post-pandemic surge would taper off amid steep interest rate hikes from 2022 to 2023 aimed at curbing inflation. Fears of demand falling off have proven unfounded, as the housing market continues to show resilience. Interest rates are gradually declining from their recent highs, while a strong economy and tight labour market have helped offset affordability concerns. Further, the...
Back to Newsroom