Page 6 - AsiaElec Week 15 2021

AsiaElec COMMENTARY AsiaElec

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

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

P6 www. NEWSBASE .com Week 15 14•April•2021