Monday, January 30, 2023
spot_img
HomeGasEurope remains top destination for U.S. LNG for second month running

Subscribe

To our FREE newsletter
Get all the latest maritime news delivered straight to your inbox.

Europe remains top destination for U.S. LNG for second month running

Europe last month remained the top destination for shipments of U.S. liquefied natural gas (LNG), according to Refinitiv data, outpacing exports to Asia for the second month in a row.

About two-thirds of U.S. LNG volumes went to Europe last month, compared to around 61% in December when sky-high European prices and demand drove U.S. LNG exports to a record, Refinitiv data showed.

In both months, a lack of supply drove demand and led to cargoes being re-routed from other destinations. The crisis over the Ukraine has highlighted Europe’s dependency on Russia for much of its natural gas and spurred buyers to seek supplies elsewhere.

LNG in Europe last month traded about $30 per million British thermal units (mmBtu) amid concerns that cheaper Russian gas supplies were failing to keep up with demand in a standoff over Ukraine.

This week, the European LNG benchmark traded on the Dutch exchange cooled, falling to $27.59 per mmBtu, below the Japan Korea Marker (JKM) price for Asia spot gas at $29.12 per mmBtu, according to consultancy Rystad Energy.

ASIAN TANKS FULL

“It sends a signal that (Asia) had full tanks and were not expecting to be big buyers,” said Jason Feer, global head of business intelligence at LNG consultancy and shipbroker Poten & Partners.

Total U.S. LNG exports to all destinations were 7.3 million tonnes per annum (mtpa), up from a record 7.14 mpta in December, preliminary Refinitiv data showed. The total includes 13 LNG tankers that have not signaled a destination.

Warmer-than-expected weather in Asia and healthy stockpiles last month helped swing LNG cargoes to Europe. China’s Unipec, the trading arm of state-owned crude oil and natural gas company Sinopec Corp, had offered to sell up to 45 cargoes of LNG for deliveries this year.

EASING PRICES

Around 13% of U.S. LNG volumes shipped last month went to Asia, down from about 25% in December, according to preliminary data from Refinitiv. Shipments to Latin America accounted for about 9% of the month’s volume, the data showed.

LNG demand overall may cool as the northern hemisphere winter heating season comes to an end, said Ross Wyeno, an analyst at S&P Global Platts.

“We might see prices ease into the spring,” Wyeno said.

The Ukraine crisis, however, poses a risk for global gas markets with a potential cut off of Russian supplies to Europe. But the prospect of Russia cutting off all pipeline gas supplies to Europe is “a highly unlikely scenario,” Wyeno said.

Source: Reuters

Related Posts

Video

Finance & Economy
Shipping News
Ports

Oaktree looking at block sale of existing shares in Hafnia Limited

OCM Luxembourg Chemical Tankers S.à r.l. which is ultimately controlled by funds managed by Oaktree Capital Management L.P. (the "Seller") has retained Fearnley Securities,...

John Fredriksen Increases Stake in Euronav

Norwegian billionaire John Fredriksen has once again increased his stake in Belgian tanker company Euronav in wake of Frontline’s termination of its combination agreement...

First Citizens Bank Arranges $44.2 Million of Debt Financing for Navios Partners

First Citizens Bank announced that its Maritime Finance group, part of the CIT division, served as sole lead arranger on $44.2 million in debt...

Eagle Bulk Appoints Kate Blankenship to Board of Directors

Eagle Bulk Shipping Inc., one of the world’s largest owner-operators within the midsize drybulk vessel segment, announced that it has appointed A. Kate Blankenship...

Golar LNG: Unwind of majority of TTF hedges of 2023 and 2024 Dutch Title Transfer Facility exposure

Golar LNG Limited (“Golar”) announced that it has unwound the majority of its swap arrangements for its Dutch Title Transfer Facility (“TTF”) linked production...

Cyprus shipping making waves – report

Cyprus shipping, the steady driver of the economy, is sailing for better times, having...

Baltic index hits fresh multi-year lows on capesize dip

The Baltic Exchange’s main sea freight index, tracking rates for ships carrying dry bulk...

Baltic index falls for seventh session on lower capesize demand

The Baltic Exchange’s main sea freight index, tracking rates for ships carrying dry bulk...

Baltic index hits fresh 2-1/2-year low as larger vessel rates slip

The Baltic Exchange’s main sea freight index extended losses to a sixth straight session...

Baltic index down for fifth day on lower vessel rates

The Baltic Exchange’s main sea freight index fell for the fifth straight session on...

Port of Long Beach Closes 2022 with Second-Busiest Year

The Port of Long Beach marked its second-busiest year on record by moving 9.13 million twenty-foot equivalent units in 2022, allowing for a return...

Hapag-Lloyd AG acquires share in J M Baxi Ports & Logistics Limited

Hapag-Lloyd AG signed a binding agreement today under which it will acquire 35% of J M Baxi Ports & Logistics Limited (JMBPL) from a...

Nigeria opens ‘game changer’ billion-dollar deep seaport

Nigeria opened a billion-dollar Chinese-built deep seaport in Lagos on Monday, which is expected to ease congestion at the country’s ports and help it...

SC Ports handles nearly 3 million TEUs in record 2022

South Carolina Ports had a record 2022 with the most containers ever handled at the Port of Charleston. SC Ports moved nearly 2.8 million TEUs...

January oil loadings from Russia’s Baltic ports set to jump 50% vs Dec

Urals and KEBCO crude oil loadings from Russia’s Baltic ports of Primorsk and Ust-Luga in January are set to rise by 50% from December...