The outlook for the U.S. LNG export market is clouded with uncertainty despite a handful of projects approved and under construction, according to a new report by the Brookings Institution.
The report’s authors said it is increasingly unlikely that projects other than those that are fully funded and approved will go to market in this decade. This is because nearly all of the proposals currently on the table have been developed under a scenario in which the price of natural gas stays low compared to prices in foreign markets that are indexed to the price of oil. The recent oil price collapse and an expected rise in the Henry Hub price could suppress demand for U.S. LNG, damaging those projects’ viability.
The Federal Energy Regulatory Commission has approved six U.S. LNG export terminals — five of which are under construction.
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