Mounting delays for natural gas liquefaction projects in the US and around the world not only place fresh strains on the pocketbooks of the operating companies but have had the knock-on effect of causing a vessel glut. Newbuild LNG carrier deliveries have been outpacing the new liquefaction facilities built to support them.
Facilities delays come in various forms, whether its materials, lining up enough contracts to make a final investment decision, or in the case of the US, playing catch-up after the Biden administration’s year-long pause on issuing new permits for LNG projects. The current administration lifted the pause in late January.
Permitting across the board has become a bit of a nightmare to hear some operators tell it. Getting the paper to conduct the simplest project can take months and at a much greater cost than previously experienced.
