LNG Projects Canceled
March 29, 2021
Most recent news regarding the LNG market has been bullish. However, reports from S&P Platts and NGI indicate that there is greenfield softness. The Annova LNG project in Brownsville (TX) has been scrapped because of insufficient long-term contracts to sanction the multi-billion-dollar build. The Kitimat LNG project in British Columbia has suffered a similar fate as its major source of funding has withdrawn.
Other new LNG projects are also having difficulty in landing long-term offtake agreements. While spot prices have been strong in recent months, this could signal growing bearish sentiment toward natural gas prices.