Shell predicts LNG shortage by mid-2020s
The Squamish Chief | Nelson Bennett | February 27 2018
Shell is predicting an LNG shortage by 2020 and has stated they will be making a final investment decision on their LNG proposal for Kitimat this year. However, LNG buyers are unwilling to sign long term contracts due to the volatility of prices. With huge upfront capital costs ($40 billion), short term contracts do not provide enough financial security for the company to give the project the go-ahead.