global-hydrogen-hub global-hydrogen-hub global-hydrogen-hub
Global LNG Hub Logo
No Result
View All Result
  • Login
  • Premium Content
  • Blog
  • Events
  • Industry Links
    • LNG Industry Association
    • LNG Market Advisors
    • Government Body
    • LNG Market Information
    • LNG Legal Advisors
    • LNG Research Institute
    • LNG Training & Education
  • Other Hubs
    • GLOBAL MARITIME HUB
    • EUROPEAN GAS HUB
    • THE COAL HUB
    • GLOBAL HYDROGEN HUB
    • CRITICAL MINERALS HUB
  • FREE TRIAL
  • My account
  • Login
Cart / €0.00

No products in the cart.

  • Premium Content
  • Blog
  • Events
  • Industry Links
    • LNG Industry Association
    • LNG Market Advisors
    • Government Body
    • LNG Market Information
    • LNG Legal Advisors
    • LNG Research Institute
    • LNG Training & Education
  • Other Hubs
    • GLOBAL MARITIME HUB
    • EUROPEAN GAS HUB
    • THE COAL HUB
    • GLOBAL HYDROGEN HUB
    • CRITICAL MINERALS HUB
  • FREE TRIAL
  • My account
  • Login
Global LNG Hub
No Result
View All Result
Home LNG Contracts & Pricing

U.S to become LNG Importer?

Editor by Editor
5 years ago
Reading Time: 2 mins read
LNG capacity
Share on FacebookShare on TwitterShare on Linkedin

By Raquel Martínez Farreres

RELATED POSTS

LNG-prices

Review of natural gas and LNG prices

2 days ago
LNG-sabine-pass

Feedgas flows to Sabine Pass, the largest LNG export plant in the US, down by 33%

1 week ago
LNG-prices

Review of natural gas and LNG prices

1 week ago

Despite the gradual lifting of these measures, the global economic downturn, market uncertainty and the contraction of gas demand have led to the cancellation of numerous LNG charges from the US. With the succession of cancellations and the expectation that demand will remain weakened in the short term, the use of liquefaction capacity in this country is expected to decrease in the coming months.

The market is facing an extraordinary situation, facing a reversal of the export dynamics.

According to a monthly report by Platts Analytics, released on June 8th, the utilization of liquefaction capacity in the U.S. is expected to fall below 50% in the coming months. Total utilization capacity began to decline in January while in the U.S. the steepest drop began in March. The first fall in the U.S. trend (seen in January) was a direct consequence of weakening LNG demand in Asian countries, already under confinement measures, but it is from March on, with the implementation of confinement measures to contain Covid-19 in some states that the drop in liquefaction is significant.

LNG capacity

Source: PLATTS and Repsol Economic Research Dpt.

The market is facing an extraordinary situation, facing a reversal of the export dynamics. On June 6th, a cargo from Trinidad and Tobago would have already been received at the Cove Point, (Maryland). In addition, some sources point out that the U.S. would have received another cargo from Zeebrugge (Belgium) at Sabine Pass (Louisiana).

Will the U.S function as a “parking-lot” for (HOMELESS) LNG cargos?

Oversupply and narrowing price spreads would be pushing LNG from the U.S. out of key markets, leaving cargos looking for a place to unload or store the gas until market conditions improve.

Given the excess capacity of the U.S., it seems logical to send the gas there, especially when Europe is at 75% of its gas storage capacity and does not have the flexibility to continue to exercise the “balancer” role of the market seen so far.

With the cancellation of charges, which could reach 125 between May and October this year, there would be space available in the U.S. to “park” loads from abroad, waiting for a subsequent recharge. By doing this, liquefaction costs would not be incurred as capacity would be available.

U.S. facilities can liquefy and export around 9 Bcf/d, a figure that would increase to nearly 14 Bcf/d with all projects under construction online. Based on GIIGNL (LNG import group) data, more than 4.5 Mcf would be currently available among 34 onshore tanks. If the average load is about 155 thousand Cm, LNG from around 30 cargos could be stored.

The question is whether this new trend is due to the current situation or will set a precedent. With another wave of new LNG projects adding new capacity at a faster rate than estimated demand growth, could this happen again? Could it be a way to find an extra income for LNG producers in U.S.? U.S. was the first in making LNG contracts more flexible. Will they be the first in working as a “parking-lot” for LNG cargos?

Just wait and see.

Source / author: Raquel Martínez Farreres (LinkedIn Profile)


RELATED POSTS

LNG-prices

Review of natural gas and LNG prices

2 days ago
LNG-sabine-pass

Feedgas flows to Sabine Pass, the largest LNG export plant in the US, down by 33%

1 week ago
LNG-prices

Review of natural gas and LNG prices

1 week ago
Tags: GIIGNLliquefactionLNG projectsRaquel Martínez FarreresU.S LNG
Editor

Editor

Related Posts

LNG-prices
LNG Contracts & Pricing

Review of natural gas and LNG prices

2 days ago
LNG-sabine-pass
LNG Contracts & Pricing

Feedgas flows to Sabine Pass, the largest LNG export plant in the US, down by 33%

1 week ago
LNG-prices
LNG Contracts & Pricing

Review of natural gas and LNG prices

1 week ago
feedgas-LNG
LNG Projects

LNG feed gas dips; JERA deal propels Rio Grande train 5 toward FID

2 weeks ago
LNG-prices
LNG Contracts & Pricing

Review of natural gas and LNG prices

2 weeks ago
global-gas-market
LNG Contracts & Pricing

Europe’s exposure to a wild and volatile global gas market

3 weeks ago

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

No Result
View All Result

Trending Posts

global-gas-market

Europe’s exposure to a wild and volatile global gas market

May 20, 2025
LNG-prices

Review of natural gas and LNG prices

May 28, 2025
LNG-sabine-pass

Feedgas flows to Sabine Pass, the largest LNG export plant in the US, down by 33%

June 4, 2025

Recent Post

LNG-prices

Review of natural gas and LNG prices

June 11, 2025
LNG-sabine-pass

Feedgas flows to Sabine Pass, the largest LNG export plant in the US, down by 33%

June 4, 2025
LNG-prices

Review of natural gas and LNG prices

June 4, 2025
feedgas-LNG

LNG feed gas dips; JERA deal propels Rio Grande train 5 toward FID

May 31, 2025
LNG-prices

Review of natural gas and LNG prices

May 28, 2025
global-gas-market

Europe’s exposure to a wild and volatile global gas market

May 20, 2025
LNG-HUB-Logo

Online platform for sharing analysis and information on Global and regional LNG markets. Weekly newsletter each Wednesday more info

Categories

  • Asian LNG
  • Australian LNG
  • European LNG
  • Global LNG
  • LNG Africa
  • LNG Bunkering
  • LNG Latin America
  • LNG North America
  • LNG Projects
  • LNG Trade and Pricing
  • Middle East LNG
  • Small Scale LNG
  • FLNG

Recent Posts

Review of natural gas and LNG prices

Feedgas flows to Sabine Pass, the largest LNG export plant in the US, down by 33%

Review of natural gas and LNG prices

Energise your Wednesday!

Sign up to receive our weekly newsletter with new LNG market reports, presentations & analysis. Every Wednesday!

Your subscription could not be saved. Please try again.
Your subscription has been successful.

By signing up, I agree to our TOS and Privacy Policy.

© 2020 GlobalLngHub | All Rights Reserved

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Premium Content
  • Blog
  • Events
  • Industry Links
    • LNG Industry Association
    • LNG Market Advisors
    • Government Body
    • LNG Market Information
    • LNG Legal Advisors
    • LNG Research Institute
    • LNG Training & Education
  • Other Hubs
    • GLOBAL MARITIME HUB
    • EUROPEAN GAS HUB
    • THE COAL HUB
    • GLOBAL HYDROGEN HUB
    • CRITICAL MINERALS HUB
  • FREE TRIAL
  • My account
  • Login

© 2020 GlobalLngHub | All Rights Reserved

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.