Global Gas Rally to Kickstart Long-Stalled US LNG Projects

Europe's declining gas production and increased dependency on Russia for its supplies has also driven worldwide LNG prices higher and focused attention on the need for new LNG plants in the United States and Asia.

Marcy deLuna, Reuters

High global natural gas prices are breaking a two-year logjam of new U.S. LNG projects with at least three of the multibillion-dollar proposals likely achieving enough supply contracts to start construction this year, developers and industry experts reported on Jan. 28.

A Louisiana project that received a green light in 2019 was the last wholly new U.S. plant to receive a go-ahead, benefiting from then-strong demand from China and utilities swapping to LNG from coal. A dozen others were stalled, first by the China-U.S. trade war and then by the COVID-19 pandemic and environmental concerns.

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