US LNG Could See Delayed FIDs due to Increasing Costs

Higher construction and lending costs could prolong commercial negotiations and delay final investment decisions for North American LNG projects

• Cost increases driven by higher material costs and inflationary pressures have led to a gap in price expectations between sellers and buyers according to Energy Intelligence. Buyers argue against long-term prices due to energy transition pressures.
• New US and Mexico LNG supplies of 50mtpa have been committed so far in 2022 with approval for Plaquemines LNG and Corpus Christi Stage 3.
• The following projects totalling up to 105mtpa are yet to be sanctioned: Lake Charles 16.4mtpa, Rio Grande 27mtps, Port Arthur 13.5mtpa, Delfin Midstream 14mtpa, CP2 20mtpa and Mexico Pacific 14.1mtpa.