The proposed NextDecade and Energy Transfer LP export terminals - the two other projects previously aiming for FID in the first quarter - have been repeatedly delayed due to rising construction, labor and borrowing costs, and by the recently narrowing spread between U.S. NEW DELAYSĮleni Papadopoulou, lead natural gas analyst at commodity data and analytics firm Kpler, said the banking crisis that emerged earlier this month raised "concerns that banking lending activity might be pulled back," she said, and "delay further FIDs," using the acronym for financial investment decision approvals. Rivals who are unable to recruit a full contingent of buyers face "a project stalling or outright cancellation," he added. The pair that have gone ahead - Venture Global LNG's project in Louisiana and Sempra Energy's (SRE.N) in Texas - embody what analysts say have met the new requirements: less reliance on developer's equity and more on fully contracted capacity.īoth projects won approvals with strong corporate financing - $7.8 billion for Venture Global and $6.8 billion for Sempra - noted Jefferies Group Managing Director of Equities Research Lloyd Byrne.Īnd the pair address volatile gas-price risk by having about 90% of production capacity under long-term deals, Byrne wrote in a report this week. Two of four new projects aiming for a financial okay this quarter have been pushed back, and others will face that higher bar, said analysts. The banking crisis added a new snag to rising interest rates and supply chain shortages for these multi-billion-dollar projects, which months ago were seen as sure bets. liquefied natural gas (LNG) project developers aiming to get their proposed export terminals off the ground as investors become more demanding. NEW YORK, March 29 (Reuters) - Financial hurdles are rising for U.S.
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