No new liquefied natural gas, LNG, export projects could be approved this year for the first time in at least two decades, banking and industry sources said, after the COVID-19 pandemic drove down energy demand and knocked prices to all-time lows.

In a stark contrast to last year’s record level of approvals for LNG production plants, 2020’s dramatic oil and gas price drop has forced companies to delay decisions on new projects and write down investments in existing plants.

The last year in which no new LNG exports plants were approved was 1998, consultancy Wood Mackenzie told Reuters, while the International Energy Agency estimated it was at least two decades ago.

Five investment banking and energy analysts said they expect no final investment decisions (FIDs) this year, while four other sources said they expect at most one to two.

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Source: SweetCrudeReports