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US LNG Sign Record Long Term Deals in Jan-Sep 2022

LNG

US LNG projects have signed a record 50mtpa of deals between January and September this year with approval for Plaquemines LNG and Corpus Christi Stage 3.

  • The expectation of tight global supplies in the coming years and strong prices have boosted project interest.
  • Despite the concern for supplies in Europe most of the interest in signing long term contracts has come from China and South Korea. European countries are trying to balance the energy security of gas supplies with their aims to meet long term emissions targets.
  • Going forward higher construction and lending costs could prolong commercial negotiations and delay final investment decisions for North American LNG projects.
  • 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.


Source: Bloomberg

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