Page 4 - AsianOil Week 15 2021

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LNG trade booms, as US

shipments to Asia, Europe rise

LNG deliveries are reported to have risen by the most in a year in
March, with shipments from the US to both Asia and Europe on the up

COMMENTARY THE global LNG trade is booming. Last week it spurring demand, Reuters cited Eikon trade
was reported that deliveries of the super-chilled data as showing March shipments of US
fuel had grown the most in a year in March, as LNG to Asia still being “well above” typi-
WHAT: Asia and Europe refilled inventories depleted cal levels for that month, even as demand
The LNG trade is booming over the winter, and more countries bounced dropped on warmer weather.
despite the seasonal back from the hit their economies took as a result Flows of US LNG to Europe are also look-
slowdown that normally of the coronavirus (COVID-19) pandemic. ing strong. Bloomberg reported that total LNG
comes in the spring. Imports were reported to have risen 5.8% imports into Western Europe in March reached
year on year in March, which was the highest their highest levels since record volumes deliv-
WHY: increase since the same month of 2020, Bloomb- ered in December 2019, rebounding to pre-pan-
Buyers in Asia and erg reported, citing ship-tracking data it had demic levels. Supplies from the US were found to
Europe are refilling compiled. have made up nearly 30% of shipments.
depleted inventories as The news service noted that European
activity rebounds from imports were supported by dwindling stock- First wave
the pandemic. piles and strong spot prices, but that it was These trends are playing out as the first wave of
Asian buyers that anchored growth in demand US LNG export terminal construction comes to
WHAT NEXT: for LNG. This was echoed by Reuters, which an end, while the second is already underway.
The energy transition is reported separately that US shipments of LNG Cheniere Energy, the leading exporter of US
anticipated to help keep to China, Japan and South Korea – the largest LNG, has just started up the third liquefaction
driving the growth in LNG importers of the fuel globally – had risen to train at its Corpus Christi terminal in Texas, and
demand. record highs in recent months. Indeed, Reu- is continuing to work on the sixth train at Sabine
ters said US shipments to Japan had grown Pass LNG in Louisiana.
so strongly that they were now on a par with “The US has got more export trains running,
those from Qatar – a major long-term seller to so it is exporting more and demand has been
Japanese utilities. relatively strong in Northeast Asia,” Reuters
While the surge has been partly sea- quoted a source that it described as a long-time
sonal, with a colder-than-expected winter gas industry participant as saying.

P4 www. NEWSBASE .com Week 15 15•April•2021