Capital Costs Pose Major Risk to LNG Investments
Major long-term capital investments require predictable profitability and stable capital costs. For the eight large-scale liquefied natural gas (LNG) projects proposed on the U.S. Gulf and East Coasts, both of these factors appear increasingly uncertain.Capital Cost Uncertainty and Workforce ChallengesOne of the biggest risks for these projects is unpredictable capital costs. The Biden administration and President Donald Trump have imposed tariffs on steel and critical energy infrastructure components, but future tariff rates remain uncertain. LNG facilities require specialty materials, such as high-cost cryogenic steel, which could be subject to tariffs...