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Rising US labour costs threaten to derail new LNG projects

Labour issues and rising costs are hampering developments in the Liquified Natural Gas (LNG) industry in the United States.
 
A report by Reuters indicates that a shortage of skilled workers and inflation from strong wage growth on the US Gulf Coast, are forcing LNG developers to delay some projects.
 
It says there are five LNG plants under development in Texas and Louisiana and 16 others on the drawing board in the US, seeking investments and customers.
 
With labour costs up by about 20 per cent since 2021, budgets have been tightened and return on investments appear dismal.
 
It is hoped these issues would be resolved soon, as the five plants under construction would add a combined 86 point 6 million metric tons per annum (MTPA) of the superchilled gas, enough to keep the US as the world's largest exporter for years to come.
 
LNG has been one of the major sources of cleaner energy to power large plants in countries like Jamaica.


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