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Pricing remains a key consideration as companies such as Royal Dutch Shell, Chevron and Petronas Bhd mull final investment decisions on Canada’s West Coast, while also keeping a sharp eye on costs.

Chevron Corp. which is considering an LNG project on the West Coast along with partner Apache Corp. has repeatedly said a “robust pricing” mechanism is crucial for the companies to go ahead with the project. Others like Petronas Bhd. are derisking their project by combining investment with long-term off-take agreements with Chinese, Indian and Japanese partners.

Asian natural gas importers such as Japan, China, India and South Korea, are also securing more favourable spot and long-term deals with a number of suppliers.

However, Asia’s desire to diversify source of supplies will mean Russia’s deal will not “crowd out” other LNG exporters, says Mary Hemmingsen, a partner at KPMG.

Still, the LNG space is fast becoming a buyers’ market and Canadian projects will have to be mindful of their costs.

“It is a very large concern,” Ms. Hemingsen said. “I was in Asia a couple of weeks go, and exposure to cost overruns is hugely concerning for Asian buyers. Many of them have been stung by the Australia experience.”

Ten out of the last 12 projects have seen their costs rise as much as 50%, KPMG said in a report published Wednesday.

International natural gas companies that have underpinned their new projects with sales contracts “will be neutral to this deal, i.e., relative winners,” said RBC’s Hutton, pointing to Total SA and ExxonMobil Corp. as beneficiaries.

For companies such as Royal Dutch Shell, Chevron Corp. that are looking to secure sales deals, the deal does not bode well.

“For companies with more spot exposure or looking to sign long term contracts to support potential LNG liquefaction, the competition may just have got harder,” Mr. Hutton noted.

If all goes to plan, Russia will start delivering the natural gas by 2018, beating the most advanced West Coast proposal by Petronas which expects to transport its first frozen gas shipment by 2019, if the company signs off on the project before the end of this year.