Page 5 - AsianOil Week 12 2021
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a long list of grievances on both sides, and few year, and for three out of four quarters in 2022.
expectations of resolving these quickly. It has reported, however, that US LNG
Nonetheless, US supply and Chinese demand exports dropped by 23% in February 2021 com-
are considered to be a good fit for each other, pared to January, to an average of 7.5 bcf (212.4
and the chances are, trade between the two will mcm) per day, as a result of disruptions caused
continue to increase. Indeed, various US LNG by the winter storm. The fact that LNG exports
executives have voiced their confidence over this are still anticipated to exceed pipeline gas exports
playing out, though they also tend to be keen to this quarter despite the storm-related outages
emphasise that they are not overly dependent on once again illustrates the fuel’s resilience.
any single market. And despite the disruptions, US LNG pro-
The EIA’s figures show that demand else- duction is set to expand further still as new trains
where in Asia also rose in 2020 – though not as start up at existing and future export terminals
significantly. Exports of US LNG to Japan rose alike. And on the demand side, interest in US
by 200 mmcf (5.7 mcm) per day in 2020, which LNG is predicted to keep rising, and indeed
the agency attributed primarily to seasonal win- appears have been bolstered by price spikes in
ter demand in the fourth quarter of 2020. Ship- Asia over the winter. In the short term, low-
ments to India, meanwhile, grew by 100 mmcf er-than-normal European gas storage invento-
(2.8 mcm) per day last year, but this was mainly ries are also anticipated to be a positive for US
linked to record low spot prices for LNG in the LNG.
spring and summer. Given the amount of disruption seen over the
past year – both pandemic-related and weath-
What next er-related – the fact that US LNG exports have
The EIA expects that US LNG exports will keep stayed so strong suggests a bright future for US
rising – as do others. The agency forecast in its liquefaction projects. And if future disruption
latest monthly Short-Term Economic Outlook can be minimised their performance will be
that the country’s LNG exports would exceed stronger still – though many of the outages are
pipeline gas exports in the first quarter of this out of exporters’ control.
Week 12 25•March•2021 www. NEWSBASE .com P5
