Rising LNG terminal costs to make new US projects less competitive, says analyst
2024.12.03 10:35
HOUSTON (Reuters) – Rising costs of constructing and equipping new U.S. liquefied plants will reduce the competitiveness of U.S. gas exports, LNG analysts at Poten & Partners predicted on Tuesday.
The Biden administration’s export permitting pause likely will keep global LNG prices higher for longer, and benefit existing exporters, Poten said at its Global LNG Outlook conference.
Jason Feer, Poten’s Business Intelligence chief, also said the firms proposing new export plants along the U.S. Gulf Coast, landing new customers will present a greater risk than regulation.
Among the risks facing LNG exporters are China’s weighing of political risks will limit its switch away from coal, and lift its LNG demand by 5% over the next decade. Europe is highly likely to resume buying Russia gas if there is peace in Ukraine, Feer said.
In the near-term, Brent-oil linked LNG prices are trending lower and could decline further, said Poten’s Feer.
