Australia's LNG Ltd. says it will not make a final investment decision this year on its proposed $6B Magnolia LNG terminal near Lake Charles, La., due to difficulty lining up Chinese buyers amid the U.S.-China trade dispute.
The company had said it expected to announce a decision by year-end 2018, but "we made that statement prior to the trade tensions that have manifested over the past months, which have caused headwinds for LNG transactions," says LNG Ltd. CEO Greg Vesey.
China's LNG consumption is surging as the government seeks to replace coal in the country's energy mix, but China reportedly is not signing any long-term deals with U.S. projects until the trade conflict is resolved.
At least six new builds or expansions in North America are on the verge of a construction decision, with more hoping to go ahead by 2020, representing more than $100B worth of potential construction.
