ExxonMobil LNG Market Development unit president Tom Cordano said LNG demand was forecast to double by 2010 and quadruple by 2020, but project cost escalation was like “a cloud hanging over this optimistic picture for the LNG business” and has “the potential to really derail the great growth that we see coming”, Reuters reported.

Research group Cambridge Energy Research Associates has estimated an 80% increase in project costs since 2000.

Speaking on the sidelines of the conference, Cordano said ExxonMobil was hopeful the worst of the price increases was over, according to a DowJones report.

"But we didn't expect the dramatic spike in the last few years either," he said.

ExxonMobil’s concerns over project costs has been cited by some commentators as being the main reason that a final investment decision has not yet been made on the Western Australia’s giant Chevron-operated Gorgon LNG project.

However, Oil & Gas Journal reported Cordano as saying there was hope on the horizon, with technology advances reducing many costs as the industry developed larger, more efficient trains, carriers and terminals.

But it remained to be seen how much the rapidly rising costs of material and labour would offset reductions in technology costs in the coming decade.