...Cost-Competitive Oil and Gas Producers: The sharp reduction in oil prices in the last twelve months will see materially lower revenues for Fitch-rated oil and gas projects in 2015 compared with 2014. The drop in liquefied natural gas (LNG) prices is moderated by the pricing formulas in long-term agreements. Negative LNG pricing pressures are accentuated by changes in the industry, such as relatively weak demand in Asia, commissioning of new capacity and new trading patterns such as shorter-term contracts. Stable Outlook Supported: The stable rating outlook for Fitch-rated projects is supported by their solid operational track records, long-term sale contracts that provide a firm revenue base and extremely low break-even prices (below USD30/bbl for Brent and/or about USD3/mmbtu for LNG), which makes them highly competitive in the global oil and gas markets. Renewables Need to Adapt: Following years of high capacity growth, the focus of national regulators is now on the sustainability of...
