Dozens of liquefied natural gas (LNG) projects are likely to be mothballed due to low oil prices, Moody’s Investors Service says in a new report.

The rating agency says that LNG suppliers are curtailing their capital budgets, amid low oil prices and a coming glut of new LNG supply from Australia and the U.S. This, it says, “will result in the cancellation of the vast majority” of the nearly 30 projects currently proposed in the U.S., 18 in western Canada, and four in eastern Canada.

Moody’s says that the projects that are already under construction will continue as planned, and that these projects “will lead to excess liquefaction capacity over the rest of this decade.” For instance, it says that, through 2017, Australia will see projects completed that will result in a 25% increase in global liquefaction capacity. And, the U.S. is poised to become a net LNG exporter by the fourth quarter of 2015, it notes.

“While some companies like Exxon Mobil Corp. can afford to be patient and wait several years until markets are more favourable, most other LNG sponsors have far less financial wherewithal, and some may be more eager to capitalize on the billions of dollars of upfront investments they have made already, sooner rather than later,” it says.

This coming capacity, plus lower oil prices will result in the deferral or cancellation of most LNG projects, Moody’s says.

Indeed, through the end of the decade, Moody’s expects LNG demand will grow more slowly versus supply.

“China will be the biggest variable and most important driver of global LNG in that timeframe,” it says; adding that India will also see rapid growth, although it will not be as big of a player as China. Other more mature LNG markets, such as Japan, South Korea and Europe, which represent the bulk of demand, will have flat growth, Moody’s says.

“The drop in international oil prices relative to U.S. natural gas prices has wiped out the price advantage US LNG projects, reversing the wide differentials of the past four years that led Asian buyers to demand more Henry Hub-linked contracts for their LNG portfolios,” says Moody’s senior vice president, Mihoko Manabe.