LNG

Contract flexibility, strong demand and reliable project execution are bolstering credit profiles of US and Canadian LNG producers, Fitch Ratings said. Longer-term credit upside could fade as competition intensifies, build costs rise and demand visibility weakens, leaving producers reliant on tighter capital discipline and low-cost expansions, analysts warn.

Private capital from Asian exploration and production (E&P) investor are flocking to the North American market in search for LNG-linked assets. Deal flow is shaped by a ‘merger of equals’ as consolidation among Canada’s Montney shale producers accelerates, and Asian buyers seek to get their hands on shale and LNG-linked assets in the US.