Prices and competition hit high-cost producers
Woodside’s Pluto LNG plant. The company’s Browse LNG project has had to rethink its strategy. (Woodside)
The combination of lower oil prices, the rise of United States LNG and Russia’s renewed drive to close pipeline supply agreements with Asian importers is further pressuring high-cost LNG projects in regions such as Australia, East Africa and Canada.
Already pressured by wavering demand growth, some projects targeting lucrative oil-indexed contracts in Asia could see their investment rationale wither in the face of slumping prices and intensifying competition between the US and Russia.