Bernstein Sees U.S. LNG Plants Scrapped as Buyers Look Elsewhere
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Most of the proposed liquefied natural gas plants meant to ship cargoes out of the U.S. will “never be built” as the collapse in oil prices damps global demand for the nation’s gas, according to Sanford C. Bernstein & Co.
With the long-term price difference between oil and gas converging, the U.S. is no longer as competitive as it used to be, Bernstein analysts including Neil Beveridge in Hong Kong said in an e-mailed report on Jan. 21. World LNG demand is set to increase by 9.8 percent to 268 million metric tons in 2015 after three years of slow growth as lower prices stimulate consumption in countries including India, they predicted.