The French government’s decision late last year to block a $7 billion-dollar deal between Engie, a French partially state-owned energy enterprise, and NextDecade, a U.S. liquefied natural gas (LNG) company, is only the latest setback for U.S. producers struggling to find their footing. It might also be the one that changes the oil and gas industry forever.
Nixing the deal because the gas is “too dirty,” the French government has echoed environmental concerns over the role that oil and gas will play in a low-carbon energy future. With the European market thoroughly intertwined, and Engie positioning itself to serve as a natural gas middleman for other countries, France decided they could not risk their reputation over the “environmental impact and controversies” linked to U.S. oil and gas.
