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LNG EXPORTING

Interactive: US LNG avoids Europe, flows to higher premium markets

08 September 2016 05:32 Source:ICIS


Europe has received just 8% of delivered volumes of US LNG since Cheniere’s Sabine Pass export terminal in Louisiana came online in February, according to ICIS shipping platform LNG Edge.

The majority of cargoes have instead found a home in South America, where markets have offered exporters a more favourable return than that available based on recent European hub prices. Forward prices suggest the trend of low flows to Europe may persist into the upcoming winter period as well.

As of 6 September, ICIS LNG Edge data showed that around 3.4 million cubic metres (mcm) of LNG had been delivered from Sabine Pass via 26 cargoes. A little more than 57% of total exports have been delivered to South America, with Chile the single biggest recipient having absorbed 28% of the total volume.

Since Anglo Dutch Shell began lifting cargoes from Sabine Pass Train 1 earlier this year, there have been seven cargoes delivered from the US to Quintero. GNL Chile – the buying consortium that comprises state-run refiner ENAP, gas distributor Metrogas and Spanish generator Endesa – receives cargoes through a long-term contract initially concluded with UK-based BG Group, which was acquired by Shell.

http://www.icis.com/resources/news/2016/09/08/10032256/interactive-us-lng-avoids-europe-flows-to-higher-premium-markets/

BY ICIS

http://www.icis.com/energy/liquefied-natural-gas/lng-resources/




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