X

Sign Up To Our Free Newsletter

Join Now

Thanks for subscribing to our free newsletter!

ERROR

  • 3 minutes Texas forced to have rolling brown outs. Not from downed power line , but because the wind energy turbines are frozen.
  • 7 minutes Scientists Warn That Filling The Sahara With Solar Panels Is A Bad Idea
  • 11 minutes United States LNG Exports Reach Third Place
  • 15 minutes Joe Biden's Presidency
  • 3 hours America Makes Plans to Produce Needed Rare Earth Minerals Domestically
  • 1 day Texas Supply Chain Massacre
  • 6 hours U.S. Presidential Elections Status - Electoral Votes
  • 23 hours Texas forced to have rolling black outs, primarily because of large declines in output from fossil fuel power plants
  • 1 day Former BP Exec "Biden not in war against oil" . . Really ?
  • 15 hours Here we go - again: plug-in hybrids cost motorists more than what they were told
  • 3 days Speaker Pelosi, "Tear Down This Wall" . . around Capital Building
  • 3 days Good Marriage And Bad Divorce: Germany's Merkel Wants Britain and EU To Divorce On Good Terms
  • 18 hours An exciting development in EV Aviation: Volocopter

U.S. LNG Fleet Heads To Asia As Spot Prices Soar

With Asian LNG spot prices almost doubling in three months, a total of nine U.S. LNG cargoes are traveling to northeast Asia, the world’s top LNG demand destination, as the price surge is making U.S. shipment via the Panama Canal more profitable.

According to Platts and its trade flow software, Asian spot prices were $9.75/MMBtu on Tuesday, compared to $4/MMBtu in April 2016, and with around $5.50/MMBtu in the middle of September last year.

Prices have surged since September, due to issues and outages at liquefaction plants, including Gorgon in Australia.

The LNG spot price increase has now made the journey from Sabine Pass in the U.S. Gulf of Mexico to northeast Asia more attractive, after prices had been too low in the first half of 2016. Even after the extended Panama Canal started making the journey shorter, the U.S. LNG cargoes were not rushing to head to northeast Asia in July, August and September.

But in the past couple of months, Asian spot prices jumped considerably, by 27 percent since mid-November, to $9.20/MMBtu in mid-December. This was the largest monthly rise for Asian LNG since February of 2013.

Platts data showed that before December 2016, just one U.S. LNG ship out of 33 cargoes from Sabine Pass had set out for northeast Asia. But now, the surge in Asian spot prices have led to nine cargoes traveling from the U.S. en route to the world’s biggest LNG buyers: Japan, South Korea, China and Taiwan.

Related: Shrinking Contango Points To OPEC Deal Success

China received its second U.S. LNG shipping last month, and data by Platt’s cFlow software shows that the country would welcome “a number of the vessels currently headed to the region”.

Japan, which has not received U.S. shipment yet, is expected to get at least one of the vessels currently traveling to the region, according to Platts.

Since the U.S. started exporting LNG in February last year, cargoes out of Sabine Pass had been mostly heading to South America, the Middle East and South Asia, with South America being the top destination.

The U.S. became a net exporter of natural gas in mid-November 2016.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News