LNG projects face risk from low US gas prices

摘要

Low North American natural gas prices are benefiting proposed US LNG export projects, but they pose a risk to planned western Canadian projects by spurring consumers to seek prices that are discounted against traditional oil-linked contracts, the International Gas Union (IGU) says. Several proposed US projects have signed long-term contracts with buyers — all likely to be indexed against US spot gas prices — and one, US firm Cheniere Energy’s Sabine Pass, has made a final investment decision (FID). But no planned western Canadian project has made an FID, and none have finalised deals with Asia-Pacific buyers, the IGU’s latest World LNG Report says.