Even with funding based on a thorough engineering definition, operators could still see a cumulative $111-billion cost overrun.
The growth in LNG production will depend on the availability of capital for construction of gasification export facilities and associated infrastructure alongside Asia’s rate of economic development and change towards a world of less carbon to combat global warming.
In sum, for the region’s gas exporters, on the one hand exports of LNG though costlier to transport, offer greater market flexibility and security than piped supplies. For gas importers, if local political tensions are resolved, piped natural gas is a very price competitive solution but LNG could still have a role in topping up supplies.
Saving the planet is a bit like picking fruit off a tree: it gets harder the farther up you climb…
Once this project is complete, it should open new sources of competitive and secure natural gas to customers in these western Baltic countries. In addition, it will aid them in their transition to low carbon power generation in keeping with the Paris Accords.