Bank Failures Add Another Wrinkle for LNG Projects Already Facing Soaring Costs

While a global banking crisis doesn’t appear to be crashing a wave of new LNG infrastructure projects just yet, finance experts say it’s adding pressure to an already tight development cycle.

Through most of March, the collapse of institutions like Silicon Valley Bank (SVB) and Switzerland’s Credit Suisse captured headlines and dimmed market outlooks. During the same month, two U.S. companies reached a final investment decision (FID) on respective Gulf Coast liquefied natural gas projects with a combined $15 billion in financing.

Rapidan Energy Group’s Alex Munton, director of global gas service, told NGI the latest FIDs show massive LNG projects can still receive financing under the right conditions, but the bar for those conditions could be moving as banks adjust to...