Do not worry if you have not been able to follow closely the LNG market in 2020. There are several markers for detecting the developments of the most dynamic part of gas market.
This year, much has been said about the adaptability of the US LNG, but Qatar is showing no less flexibility in optimizing its commercial activities and improving sales efficiency. The Middle East producer has promptly responded to highly volatile prices and sought to redirect cargoes from East to West and vice versa, at the first available opportunity.
The shifting geography of Qatar’s exports demonstrates how fast were LNG market movements in the course of 2020. As the difference between prices in Asia and Europe narrowed in Q2, LNG imports to the UK from Qatargas trains averaged 1 Mt per month in Apr-Jun. In response to the subsequent JKM – NWE spread widening, which has peaked in Q4, the figure for Nov and Dec combined declined to just 90 Kt. China, on the contrary, has experienced a fourfold increase in cargo arrivals from Qatar over that period.
This all further underlines the global nature of gas market. The interdependence of elements within the system will only be increasing so that no one can get bored in 2021 and beyond.
Source: Yakov Grabar
See original post by Yakov on LinkedIn.
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