Rising Calls for US LNG Revive Stalled Export Projects, But at Higher Costs

Russian steel and nickel imports required to build U.S. LNG export facilities are reaching higher prices, which could decrease returns but shouldn't halt the construction projects, according to analysts.

Marcy de Luna, Reuters

Soaring demand for U.S. LNG as buyers steer clear of Russian fuel is putting some long-stalled U.S. export projects back on track. But rising costs for materials and labor threaten to snarl these plants once again.

Two developers with projects sidelined due to the U.S.-China trade war – Energy Transfer with its Lake Charles LNG and Tellurian Inc. with its Driftwood LNG – have begun talks with construction provider Bechtel Group over costs, according to a spokesperson and regulatory filing.

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