Offtake Sets Pace for US Project Funding

Regulatory approvals continue to determine the overall timeline for implementation of US liquefaction projects, but sponsors of schemes that fail to pin down commercial arrangements will be unable to move ahead and raise bank financing, even if they have the prerequisite government documents in hand. Many of the large, investment grade customers have already been signed up and those that are still looking can sit back and take their time to secure the most attractive deals. Projects that are unable to sell most of their production or capacity through long-term take or pay contracts will struggle to raise financing for their multi-billion dollar schemes. The severity of the oil price slide, which negatively affects the pricing of LNG and the profits of many companies in the LNG sector is adding to the difficulties of project sponsors looking to sign up customers (see Price Fall Pressures Long-Term LNG Contracts report above). Please fill out form below to view article.