Two more US LNG projects should by funded soon, says Drewry
Two LNG projects totalling around 20 million tonnes per year of capacity – CP2 phase 1 and Commonwealth LNG – are next in line for final investment decision (FID) approval, according to Drewry Shipping research.
Providing an update on the LNG market, Pratiksha Negi, a lead analyst for gas shipping, said, “We are expecting the rebound to happen in 2025, and it has already happened, with three projects already securing their FID in the first half [Louisiana LNG, Corpus Christi Phase 3 Midscale and Southern Energy FLNG], and we expect CP2 and Commonwealth LNG to secure FID by the end of this year – the critical reason being the acceleration in regulatory easing.” Commonwealth LNG received Federal Energy Regulatory Commission approval last month.
The presentation highlighted well-documented concerns about the looming increase in supply, which Drewry expects to peak in 2027. New terminals, such as Plaquemines LNG – which has announced an expansion – and Canada LNG, have boosted supply and Greater Torture FLNG has begun shipments to Europe.
However, LNG demand still looks robust despite short-term uncertainty, said Drewry.
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