Recovering Gas Demand For LNG Exports

US LNG Supply disruptions as a result of last week’s deep freeze has offered minimal international price support, specifically at JKM and also in European markets, as estimations of summer cancellations have begun to drop.

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Suspended vessel traffic at Corpus Christi, Cameron, Sabine Pass, Port Arthur, and Lake Charles is beginning to resume. This comes as demand for LNG exports returns as well, gaining nearly 6.7 Bcf/D back of the total 9.1 Bcf/D of demand that was curtailed as gulf coast facilities terminals were frozen in place and without power.

Domestic prices rose dramatically, and massive margins were taken advantage of by selling previously purchased gas back into the local market, trumping exports. In addition, Texas Gov. Greg Abbot’s Feb. 17th order that no natural gas be shipped across state lines for 5 days made the decision to curtail gas unavoidable.

Even alongside 15 LNG cargoes being cancelled to JKM alone, a decrease in summer cancellations would suggest stronger LNG summer 2021 demand.

Source: Gelber & Associates

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