2nd Quarter 2026
The US export project finance bonanza continued into 2Q 2026 as Delfin FLNG1 and Commonwealth LNG made final investment decisions (FIDs) and obtained finance. They joined US compatriot CP2 LNG Phase 2, which successfully reached a 1Q 2026 FID. The three this year follow the unprecedented six US LNG export projects that made FID last year (see Yearly Finance Chart).
Towards the end of June, liquefaction finance had hit $40 billion which possibly puts it on course, if the deal pace continues, to reach 2025’s record $83 billion.
~To June 22, 2026
In 2Q 2026, in addition to the Delfin FLNG1 and Commonwealth LNG project financings, there were also refinancings of debt for US export projects under construction or already in operation (see LNG Finance Review).
In 1H 2026, most of the liquefaction finance and refinancing was secured by US-based projects, although Australia Pacific LNG also refinanced its project debt, Mitsui secured loans from banks and Japanese export credit agency (the Japan Bank for International Cooperation) to finance the ADNOC-led Ruwais LNG project in Abu Dhabi, and MidOcean brought in equity capital from investors (this is included in the liquefaction tallies because most of MidOcean’s investments have been in LNG export facilities).
The prevailing finance method used by North American projects in 1H 2026 was project finance loans, followed by bonds, mostly for refinancing, then other types of loans and then equity (see North American Liquefaction chart). Both Delfin and Commonwealth LNG brought in third-party equity, but Venture Global has sufficient cash flows from LNG sales from its operating projects and did not need to raise equity capital for CP2 LNG Phase 2.
More export projects target FID
More developers of projects in the US, Canada and Mexico are looking to make FID and reach financial close this year, but it is unclear if their objectives can be realized.
The impetus may be there to get them over the line, given that export projects in North America and other regions are benefitting from the search for pricing diversity and the focus on security of supply after the ongoing Iran war halted shipping traffic through the Strait of Hormuz and took 17% of Qatar’s LNG production offline for three to five years.
In North America, two smaller export projects appear to be within striking distance of reaching FID this year. Amigo LNG Train 1 and Texas LNG have a combined liquefaction capacity of 7.9 MMt/y, and each are sold out and said to be in various stages of discussions with equity partners and banks. If both reach FID, that will bring the 2026 totals to 27.4 MMt/y of new liquefaction capacity, with an estimated financing of nearly $37 billion required. Canada’s Ksi Lisims LNG, and LNG Canada Phase 2 also plan to reach FID this year, although LNG Canada Phase 2 is not expected to require external finance and will rely on its partners’ balance sheets for funding.
Outside North America, Argentina LNG Phase 1, Mozambique’s Rovuma LNG and the TotalEnergies-led $15 billion Papua LNG also have publicly-stated goals of reaching FID this year. The ExxonMobil-led Rovuma LNG project is expected to need loans of over $15 billion, while the Papua LNG project is likely to cost around $15 billion and Argentina LNG Phase 1 is understood to be initially seeking project finance loans of around $16 billion. When they proceed these projects will significantly boost financing totals.
These proposed projects have a combined 62 MMt/y of liquefaction capacity, but still need to finish either commercialization, construction contracts, supporting pipeline agreements, feedgas contracts or other deals, and to finalize finance. Given the complexity of the work remaining, FID could easily slip into 2027.
In the US, Alaska LNG Phase 1, a pipeline project designed to support the Phase 2 liquefaction project, is also seeking to reach FID this year after securing the necessary commercial commitments. It has already conducted soundings on finance with banks, but high costs remain a concern. The pipeline is expected to cost up to $16.9 billion while the 20-MMt/y liquefaction plant could cost up to $28.4 billion, and the supporting North Slope natural gas pretreatment plant up to $9.2 billion, which would bring the total cost of the Alaska project to $54.5 billion, or $2,725 per ton. Even with a proposed US government guarantee for financing, which would bring down margins on the loans, that is still a substantial sum to raise.
The 3.6-MMt/y Eni-led Coral Norte FLNG project in Mozambique made FID in October last year, but is expecting to finalize its project financing this year (see LNG Finance, 3Q 2025).
Japan’s Inpex is also discussing a $13 billion debt package for the $21 billion Abadi LNG project in Indonesia with ECAs and banks. However, it is likely to make FID in 2027 rather than this year.
There are also more than two dozen proposed, pre-permit LNG export projects in North America with five seeking to reach FID in 2027: Sabine Pass Stage 5 Phase 1, Corpus Christi Stage 4 Phase 1, Rio Grande LNG Train 6 and the two Venture Global bolt-on expansion projects. The five projects have a combined 34 MMt/y of liquefaction capacity. Cheniere Energy’s Sabine Pass Stage 5 Phase 1 is a single 6-MMt/y train project that is already sold out and is only waiting for permits before reaching FID. It will not require equity partners for financing, although the other projects will need to obtain permits and sell all their volumes to secure external finance. However, as expansions, once these projects obtain permits and pin down commercial terms, they are likely to be able to move quickly to FID, if demand projections are acceptable.
This excerpt is taken from Poten’s LNG Finance in World Markets. Complete the form below to learn more or request a trial.