LNG: US LNG Developer Concern for Labour Costs Amid Multiple US Projects

Developers are expanding training and coordinating projects to keep workers amid concern for labour costs with eight US LNG export construction projects underway to add 86mtpa of capacity according to Reuters.

• Soaring construction costs hurt project economics in the past and even led to bankruptcy for one major contractor according to Alex Munton from Rapidan Energy Group.
• "We have multiple projects that are under way at the same time and four mega projects, with the possibility of a fifth to be announced soon, and they require the same type of labour," he said. "This will drive up labour costs, increase schedule risks and create productivity issues."
• "Labour has grown as an inflationary concern for everyone in the industry. We need to actively forecast and manage labour availability and supply chain like never before," said Paul Marsden Marsden, head of Bechtel Corp's Energy global business unit.
• Some newer plants are employing modular and pre-built components to avoid the inflationary pressure by outsourcing some of the construction to countries with lower labour costs.

Source: Reuters