S&P Global Platts: Geopolitical risk, inflation create uncertainty for US LNG developers

But some of these projects may face roadblocks in obtaining capital in the short-term amid an uncertain long-term lending environment, according to US ship brokerage Poten & Partners.

“Elevated geopolitical risk due to the Ukraine crisis and inflation issues all play into an uncertain environment that affects base rates,” said Melanie Lovatt, finance advisor for LNG research reports at Poten. ” A higher base rate plus a [lending] margin means higher all-in pricing for borrowers.”