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Full storage in Europe shifts LNG trade LNG terminal in Swinoujście, Poland, had been
flows reserved. The terminal is in the process of being
The US could find itself receiving more LNG expanded. Meanwhile, a new deal has brought
cargoes as a lack of available storage capacity the reserved capacity at Croatia’s Krk facility,
in Europe leads to shipments being directed which is currently under construction and due
elsewhere. to start up in 2021, to 80%.
On June 8 a tanker from Trinidad was
reported to have arrived at Dominion Energy’s If you’d like to read more about the key events shaping
Cove Point LNG terminal in Maryland over the the global LNG sector, then please click here for
weekend. Meanwhile it is thought that another NewsBase’s GLNG Monitor.
tanker, Madrid Spirit, sailing from Nigeria may
also unload its cargo of the super-chilled fuel in LatAm mulls production levels
the US. (See: LNG cargo arrives in US, another Several countries in Latin America are taking a
reportedly en route, page 11) close look at oil output levels.
This comes after US gas futures started trad- During negotiations over production quotas
ing at a premium to European benchmarks in over the weekend, Mexico once again found at
April for the first time in 10 years. This, com- odds with other members of the OPEC+ group.
bined with filling storage capacity in Europe, Rocio Nahle, the country’s energy minister, told
prompted buyers to cancel a number of upcom- reporters on June 6 that Mexico “fully respected”
ing cargoes scheduled for loading from US LNG the group’s previous agreement, under which it
terminals. Meanwhile, analysts have said it could slashed output by 100,000 barrels per day (bpd)
make sense under these circumstances to send in May and June, but would not push the dead-
some LNG to the US for storage. line back any further.
Most of the US’ operating LNG plants began Brazil, meanwhile, has reported that oil pro-
their life as import terminals before being con- duction remained steady in the month of April,
verted to liquefaction in recent years. They are even as the coronavirus pandemic ravaged
still able to receive cargoes as well as send them world energy markets. According to the state oil
out. and gas regulator, known as ANP, output levels
According to Reuters, 21 LNG cargoes were reached 2.9mn bpd in April, down by just 0.5%
delivered to the US last year – also mostly from on the previous month and up by 13.6% on April
Trinidad – while over 500 were exported. 2019.
Demand for LNG in Europe remains, how- Argentina, for its part, is looking to expand
ever, despite short-term challenges caused by its future production capacity. The government
storage capacity filling amid the coronavirus of Neuquén province is reportedly preparing
(COVID-19) pandemic. It was recently reported to launch a tender for Loma Amarilla Norte, a
that 100% of the regasification capacity at the block within the Vaca Muerta shale formation.

Week 23 11•June•2020 www. NEWSBASE .com P7