Page 6 - EurOil Week 15 2021

EurOil COMMENTARY EurOil

LNG trade booms, as US sales

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

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

P6 www. NEWSBASE .com Week 15 15•April•2021