-- Australia-based Woodside Energy (WDS) is struggling to secure buyers for its planned Louisiana LNG export facility, Reuters reported Thursday.
The primary obstacle is the company's insistence on liquefaction fees, the cost added to the base price of gas to process it for transport, that exceed current US market averages, according to the report.
While these fees have risen globally due to labor shortages and construction costs, Woodside's high entry point may have identified a pricing ceiling for US LNG exports, it said.
As per the report Woodside initially sought fees exceeding $2.80 per million British Thermal Units, significantly higher than the typical US range of $2.40 to $2.50.
For comparison, industry leader Cheniere Energy (LNG) charges about $2.60, while Venture Global (VG) sits at the lower end at roughly $2.30.
Woodside did not respond to' request for comments.
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