Annova LNG’s backers will sanction the proposed $4.5 billion South Texas export project after two-thirds of the capacity is sold and are willing to offer so far elusive buyers a gas charge with a lower premium than what has been typical for existing terminals, CEO Omar Khayum told S&P Global Platts in an interview. The target and pitch reflect the realities of a crowded marketplace in which more than a dozen developers of US liquefaction facilities currently scheduled to start up during the early to middle part of next decade have persistently struggled to secure sufficient long-term offtake contracts to finance construction. What was supposed to be a breakout year for final investment decisions has largely not been as it draws to a close. Only two new projects and an additional train at an existing facility have advanced to construction over 2019. With pressure building, several developers, including Annova LNG, have pushed off their FIDs until 2020 or later. Some have stopped talking about FID timing, altogether.
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