Surging labor and construction costs are plaguing some major U.S. LNG export projects, threatening to delay new LNG supply to international markets.   

Wage growth since 2021, a shortage of skilled workers, and rising costs of materials with the inflation over the past three years have increased overall contractor costs for U.S. LNG export projects, analysts tell Reuters.

Wages for skilled workers have jumped by 20% since 2021, and in some cases contractors have had to pay a per diem rate to retain these workers, Travis Woods, president of Gulf Coast Industrial Group representing more than 1,500 contractors in Texas and Louisiana, told Reuters.   

In addition, engineering, procurement, and construction (EPC) contracts for new LNG export plants have jumped by up to 25% since 2021, according to consultancy Rapidan Energy Group.

Source: Zero Hedge
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