"Low LNG prices will result in the cancellation of the vast majority of the nearly 30 liquefaction projects currently proposed in the US," the press release stated.
The drop in international oil prices has wiped out the cost advantage that drove LNG projects in the United States during the previous four years, according to Moody’s.
There are only a few suppliers that have the financial strength to withstand the crisis, the release added.
"While some companies like Exxon Mobil Corp. can afford to be patient and wait several years until markets are more favorable, most other LNG sponsors have far less financial wherewithal," the release explained.
However, according to the release, projects already underway will lead to excess liquefaction through the rest of the decade.
The United States is poised to become a net LNG exporter in the fourth quarter of 2015 after a major installation in the Gulf of Mexico goes into service, the release said.
The recent years' boom in natural gas production in the United States has led to a more aggressive US export policy, which will begin in earnest by 2016, according to the US Department of Energy.
