High gas prices could make US LNG uncompetitive, says Fulcrum LNG chief
UNG•Fulcrum LNG CEO Jesus Bronchalo said US LNG projects could become uncompetitive if domestic natural gas prices continue rising, with Henry Hub likely to increase further.
1. Rising gas prices
US LNG projects could become uncompetitive if domestic natural gas prices continue rising, Fulcrum LNG CEO Jesus Bronchalo said at a panel discussion at Rice University's Baker Institute. He said Henry Hub prices are likely to rise further and could make US LNG too expensive to compete.
2. Financing shifts
Sempra Infrastructure general counsel Julie Mayo said private equity backed by government-backed sovereign wealth funds is increasingly being used to finance US LNG projects. She cited Sempra's use of private equity for its expansion as an example of a model outside traditional external loans.
