Free Trial

Liquefaction Fees Rising at New US LNG Projects

LNG

Long-term buyers of LNG are willingly agreeing to higher liquefaction fees at new projects, according to Reuters.

  • "We would naturally expect increased costs of project development, due to higher interest rates or other factors, to have a corresponding impact on liquefaction fees," said Lyle Hanna, a vice president at Commonwealth LNG.
  • The most recently approved project - Rio Grande LNG - raised its liquefaction fee due to rising project costs, according to Jason Feer, global head of business intelligence at Poten & Partners.
  • Long-term customers can afford to pay higher prices to offtake US LNG because newer projects still provide good margins due to low Henry Hub prices.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.