Roughly a dozen proposed terminals authorized by U.S. regulators over the past several years haven’t been built because developers are still trying to line up funds. What makes offshore projects easier to advance, according to Edens, is the fact that they can rely on old ships for storage as opposed to building new storage tanks.
“The storage tanks are the challenge,” he said. “They cost a lot of money, a lot of time to permit and they’re environmentally very sensitive.”
U.S. LNG exports are also constrained by limited pipeline capacity.
“Wes Edens is an entrepreneurial leader on a mission,” said Rob Thummel, portfolio manager at Tortoise, a firm that manages roughly $8 billion in energy-related assets. “I would expect the New Fortress Energy project to cost more and take longer to build than what is currently estimated but it could be part of the global solution of replacing Russian gas imports into Europe.”
This article was provided by Bloomberg News.