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New US LNG Projects Threatened by Labour Cost Surge: Reuters

LNG

A shortage of skilled workers and inflation from strong wage growth on the USGC could push US LNG projects to be delayed, according to Reuters.

  • There are five LNG projects under development in Texas and Louisiana with a combined capacity of 86.6m mtpa.
  • There are 16 others in the pipeline and looking to secure investment.
  • However, labour costs have risen as much as 20% since 2021, ballooning construction budgets and putting pressure on investment returns
  • Works at Golden Pass LNG, one of the largest US projects, has largely halted due to its main contractor filing for bankruptcy.

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