Page 14 - GLNG Week 23

GLNG AMERICAS GLNG

Two LNG cargoes sent to US

as European storage fills up

PIPELINES & AN LNG tanker – the Kinisis – arrived at prompted cargoes to be directed to the US. LNG
TRANSPORT Dominion Energy’s Cove Point LNG terminal imports into the US are not without precedent,
in Maryland from Trinidad on June 6. Another though, as the country receives limited amounts
tanker – Madrid Spirit – arrived at a port in of LNG occasionally and most of its operational
Georgia from Nigeria on June 11 and is expected terminals have regasification capacity, having
to offload its cargo at Kinder Morgan’s Elba been initially built as import facilities. Remaining
Island LNG terminal. The US received 21 cargoes of LNG in 2019,
The tanker was chartered by Royal Dutch mostly from Trinidad. Over the same period, it available
Shell, Reuters reported, citing sources familiar exported over 500 shipments of the fuel.
with the matter. Indeed, Shell has a long-term Remaining available European storage European storage
contract to use the Elba Island facility, though capacity is anticipated to be filled by the end of
the company has not commented publicly on the summer, and this could potentially push gas capacity is
the matter. prices on the continent below those in the US anticipated to be
The arrival of these vessels and their cargoes once again. It would not be surprising if more
comes as available gas storage capacity in Europe cargoes were directed to the US under such cir- filled by the end
runs out, while the glut of LNG puts downward cumstances, and analysts have said that it makes
pressure on spot prices in both Europe and Asia. sense for some companies to send LNG to the US of the summer.
This made the US a more attractive destination for storage. Indeed, according to Energy Aspects,
as prices converged, and indeed in late April, US BP, Equinor and Shell have storage rights for a
gas futures traded at a premium to European 120-day period at Cove Point LNG.
benchmarks for the first time in around 10 years. Federal and Refinitiv data cited by Reuters
European prices have rebounded so far in June, show that Cove Point LNG has received two
however, rising above US prices once again. other LNG cargoes so far this year. Exelon’s Ever-
Cancellations of cargoes scheduled to be ett terminal in Massachusetts is also reported to
loaded in the US over the summer have been have received seven cargoes so far in 2020, but
reported on with increasing frequency in recent this is mostly used to fuel the Mystic gas-fired
weeks. However, this is the first time that cur- power plant, and not for imports or storage for
rent market conditions are reported to have other companies.™

P14 www. NEWSBASE .com Week 23 12•June•2020