LNG in World Markets: Fewer LNG Project FIDs Expected on US Permit Pause
This current feature was extracted from the latest edition of Poten’s LNG in World Markets, a monthly service published on April 2, 2024.
This year was supposed to be a good one for the addition of new liquefaction projects. The US and Mexico were expected to see a handful of final investment decisions (FIDs) and developers in other countries were poised to add to the project tally. There was talk that 2024 would possibly see more capacity sanctioned, globally, than last year’s 36 MMt/y.
Last year’s FIDs, amounting to 36 MMt/y of LNG export capacity, were all made by US projects. They were Venture Global’s Plaquemines LNG Phase 2, NextDecade’s Rio Grande LNG Phase 1 and Sempra’s Port Arthur LNG Phase 1.
However, the temporary pause on US non-free trade agreement (non-FTA) export licenses and tougher conditions for in-service date extensions is expected to delay FIDs for projects in the US, as well as those in Mexico using US gas as feedstock. This lull has created space for others – with Qatar quick to announce a 16-MMt/y expansion. Others among the 2024 FID hopefuls, however, may struggle to capitalize on this burgeoning opportunity as additional challenges threaten to delay their projects.
To read the full analysis, please click here.
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LNG in World Markets: Fewer LNG Project FIDs Expected on US Permit Pause
This current feature was extracted from the latest edition of Poten’s LNG in World Markets, a monthly service published on April 2, 2024.
This year was supposed to be a good one for the addition of new liquefaction projects. The US and Mexico were expected to see a handful of final investment decisions (FIDs) and developers in other countries were poised to add to the project tally. There was talk that 2024 would possibly see more capacity sanctioned, globally, than last year’s 36 MMt/y.
Last year’s FIDs, amounting to 36 MMt/y of LNG export capacity, were all made by US projects. They were Venture Global’s Plaquemines LNG Phase 2, NextDecade’s Rio Grande LNG Phase 1 and Sempra’s Port Arthur LNG Phase 1.
However, the temporary pause on US non-free trade agreement (non-FTA) export licenses and tougher conditions for in-service date extensions is expected to delay FIDs for projects in the US, as well as those in Mexico using US gas as feedstock. This lull has created space for others – with Qatar quick to announce a 16-MMt/y expansion. Others among the 2024 FID hopefuls, however, may struggle to capitalize on this burgeoning opportunity as additional challenges threaten to delay their projects.
To read the full analysis, please click here.
Sign up our upcoming panel webinar on this topic.
