Page 6 - NorthAmOil Week 14 2021

NorthAmOil COMMENTARY NorthAmOil

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

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

More liquefaction
capacity has just come
online in the US with
the start-up of Corpus
Christi LNG Train 3.

P6 www. NEWSBASE .com Week 14 08•April•2021