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American LNG fell out of love with Europe

American LNG fell out of love with Europe

In August to European terminals, including Turkey, the smallest volumes of LNG in the last three years will arrive. The largest decline is shown by suppliers of American liquefied gas. For "freedom molecules" pay more in the markets of Asia and South America.
According to Gas Infrastructure Europe, suppliers continue to reduce LNG exports to Europe. In August, they fell to a three-year low - 141 million cubic meters per day. Lower rates were recorded in September 2018 of the year - 109 million cubic meters per day.

At the same time with 2018 years around the world introduced new capacities for the production of liquefied gas, and back in April, almost three times more were shipped to Europe - 321 million cubic meters. However, the free market has put everything in its place..

Countries in Asia and South America are ready to pay more and are pulling off the main supplies. If gas has been traded on European exchanges in recent days in the region $ 550 per thousand cubic meters, then in Northeast Asia - by $ 612.

Economic recovery was superimposed on abnormal winter temperatures, in spring and summer and suppliers cannot fully meet all demand.

The largest decline in Europe is shown by suppliers of American liquefied gas. If in March and April they delivered to the terminals of the Old World 3,7 and 3,5 billion cubic meters in the form of LNG, then in July - 1,44 billion, and in August - 1,25 bcm, according to Ronhenergy.

Total LNG supplies to Europe from January to August decreased by more than 17 bcm, and this is almost half of the gas volume, which are lacking in the repositories of Europe, to reach last year's level: 96,5 billion cubic meters per 25 August.

The gas price rally continues and, eg, at the Pakistan LNG tender, the Pakistani operator is offered to buy cargo with delivery in October already and by $ 800 per thousand cubic meters. However, the cost of fuel has already become so high, that it becomes more profitable for consumers to purchase coal and fuel oil for electricity generation.

“On a calorie basis, everything, from fuel oil to liquefied petroleum gas (SUG), became cheaper, than gas ", - noticed on Twitter Anne Koch из Bloomberg. she notes, that Japan has been actively replenishing LPG reserves since June, Pakistan has increased the purchase of fuel oil, while China and India will show an increase in coal consumption in the second half of the year. Already, Chinese state-owned companies are increasing imports of cheaper pipeline gas, adds ICIS analyst Tom Marsek-Manser.

speech, true, about spot delivery, whose share is no more than 30% in total. Most of the LNG is still purchased by consumers under long-term contracts linked to oil prices..

A source