This is a great example of "it depends on which side of the issue you stand," whether this is great news or not such great news. Being a long-time admirer of Sempra Energy, I find this story delightful.
Harry Weber, over at S&P Global, says shrinking North American LNG field raises fears of "oligopolistic" supplier futures among panelists.
They should have put me on the panel. LOL.
There is a mismatch between the amount of available financing and the number of quality liquefaction projects, making it difficult to add new supplies to a tight global market, infrastructure investment experts said March 25 during S&P Global Platts' LNG Virtual Conference.
The dearth of newly sanctioned export projects in 2020 and so far in 2021 — especially in North America, which has been responsible for the majority of new LNG supply globally over the last five years — is a worrisome sign that could lead to more price volatility in the future, the officials said.
In North America, there was only one new liquefaction project sanctioned last year — Sempra Energy's Energia Costa Azul project on Mexico's Pacific Coast. More than a dozen other developers in the US, Canada, and Mexico are actively pursuing projects of their own, although the field is dwindling amid ongoing contracting and financing challenges. Exelon-backed Annova LNG recently scrapped its LNG export project in Texas. Analysts expect more US greenfield projects to drop off the board.
Whoo-hoo!
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