Page 7 - GLNG Week 23

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Full storage in Europe shifts LNG trade reported that 100% of the regasification capac-
flows ity at the LNG terminal in Swinoujście, Poland,
The US could find itself receiving more LNG had been reserved. The terminal is in the pro-
cargoes as a lack of available storage capacity cess of being expanded. Meanwhile, a new deal
in Europe leads to shipments being directed has brought the reserved capacity at Croatia’s
elsewhere. Krk facility, which is currently under construc-
On June 8 a tanker from Trinidad was tion and due to start up in 2021, to 80%. (See:
reported to have arrived at Dominion Energy’s MVM books capacity at Croatian LNG termi-
Cove Point LNG terminal in Maryland over the nal, page 16)
weekend. Meanwhile it is thought that another
tanker, Madrid Spirit, sailing from Nigeria may LatAm mulls production levels
also unload its cargo of the super-chilled fuel in Several countries in Latin America are taking a
the US. (See: LNG cargo arrives in US, another close look at oil output levels.
reportedly en route, page 14) During negotiations over production quotas
This comes after US gas futures started trad- over the weekend, Mexico once again found at
ing at a premium to European benchmarks in odds with other members of the OPEC+ group.
April for the first time in 10 years. This, com- Rocio Nahle, the country’s energy minister, told
bined with filling storage capacity in Europe, reporters on June 6 that Mexico “fully respected”
prompted buyers to cancel a number of upcom- the group’s previous agreement, under which it
ing cargoes scheduled for loading from US LNG slashed output by 100,000 barrels per day (bpd)
terminals. Meanwhile, analysts have said it could in May and June, but would not push the dead-
make sense under these circumstances to send line back any further.
some LNG to the US for storage. Brazil, meanwhile, has reported that oil pro-
Most of the US’ operating LNG plants began duction remained steady in the month of April,
their life as import terminals before being con- even as the coronavirus pandemic ravaged
verted to liquefaction in recent years. They are world energy markets. According to the state oil
still able to receive cargoes as well as send them and gas regulator, known as ANP, output levels
out. reached 2.9mn bpd in April, down by just 0.5%
According to Reuters, 21 LNG cargoes were on the previous month and up by 13.6% on April
delivered to the US last year – also mostly from 2019.
Trinidad – while over 500 were exported. Argentina, for its part, is looking to expand
Demand for LNG in Europe remains, how- its future production capacity. The government
ever, despite short-term challenges caused of Neuquén province is reportedly preparing
by storage capacity filling amid the corona- to launch a tender for Loma Amarilla Norte, a
virus (COVID-19) pandemic. It was recently block within the Vaca Muerta shale formation.

Week 23 12•June•2020 www. NEWSBASE .com P7