At least 10 proposed liquefied natural gas (LNG) export projects that have been approved for construction by regulators are now delayed by at least a year, as companies confronted by both the COVID-19 recession and the oversupply of natural gas have postponed final investment decisions.
The analysis is based on corporate announcements and regulatory decisions to delay construction starts reviewed by the nonprofit Environmental Integrity Project (EIP) in a report released in October, titled “Troubled Waters for LNG.”
These 10 projects with known delays include six new LNG terminals and four expansions, most along the Gulf Coast of Texas and Louisiana, with one new terminal proposed for Oregon.
“Rock-bottom energy prices and persistent oversupply jeopardized numerous proposed LNG export terminals before the pandemic, and now their viability is even more tenuous,” said EIP Research Analyst and report author Alexandra Shaykevich. “At the very least, it’s likely that these projects will be postponed by several years.”
LNG is natural gas that has been cooled to a liquid state, allowing it to be exported on tankers to overseas markets that would otherwise be inaccessible through pipeline transport.
On top of these 10 LNG projects with known delays of at least a year (because companies have failed to make final investment decisions expected by now) are another seven projects with permits for construction whose status is unclear. In these cases, they have received federal or state authorizations within the last 18 months. But no construction has begun, and final investment decisions by the companies are not expected until later in 2020 or in future years.
For a copy of the report, click here.