Recent global economic conditions, including the steep drop in the price of oil, have created uncertainty for a number of US LNG projects. For example:
Despite this recent spate of bad news for US LNG projects, most projects already in the regulatory queue seem destined to move forward with the US DOE and FERC having already granted a number of regulatory approvals. Moreover, most of the large US LNG projects are already fully subscribed with approximately 15 Bcf/d under contract. This obviously bodes well for these projects moving forward over the long term although there are likely to be project delays unless current market conditions change.
Considering the full list of pending US projects, here are my views on 6 key US LNG projects under contract.
Based on this snap-shot of some of the more advanced US LNG export projects, with the caveat that projects that are currently unsubscribed will likely face challenges and delays until market conditions improve, the overall outlook for US LNG projects remains positive with the US expected to become one of the world’s largest LNG exporters by 2025. -Article end-
What do you think? Will oil majors continue to cut spending on US LNG export projects due to uncertainty around the price of gas? Let us know your views below.
To meet Professor Susan Sakmar and discuss how falling oil prices and US LNG exports are affecting the global gas industry, attend Gastech Singapore this October. Follow the banner below to find out how you can get involved.
This article came courtesy of Susan L. Sakmar - Professor Sakmar is licensed to practice law in California and has over 20 years of experience working in a variety of legal, corporate and academic settings. She is currently an independent consultant and adjunct law professor at the University of Houston Law Center where she teaches a course on Shale Gas & LNG. She also is the author of the most recent book on LNG, ENERGY FOR THE 21ST CENTURY: OPPORTUNITIES AND CHALLENGES FOR LIQUEFIED NATURAL GAS (LNG).
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