US LOSING EUROPE
Changing dynamics in the global LNG market hint at a stronger role of European markets, and a decreased interest of American players given a minimal growth of the global markets, which are expected to increase 'only' between 2.1 and 2.5% in 2015.
'In Europe, LNG net imports grew by 16.8% year-on-year in Q2 2015, following a 35.9% year-on-year growth in Q1. In Q2 2015, Europe imported 8.71 million tons of LNG against 7.46 million tons in Q2 2014. To a lower extent than in the first quarter of the year, Northwest European markets continued to absorb flexible LNG diverted from Asia' reads a note released by Cedigaz on Wednesday.
Spain, the largest importer in Europe, was the protagonist of this rebound.
'In Spain, ... LNG net imports rebounded significantly, from 1.31 million tons in Q2 2014 to 2.07 million tons in Q2 2015 (+57.9%), as reloaded volumes collapsed by 66.4%, from 1.4 million tons to 0.47 million tons and as natural consumption was boosted by the power sector.'
On a global scale, apart from Europe's increasing exports, Asian lower demand and the emergence of players like Egypt, Pakistan and Jordan are the most relevant changes. The three countries received about 1 million tons of LNG, including 0.68 million tons from Qatar.
Meanwhile, the United States are bracing for entering into the market as exporters, but the changes in the market dynamics seem to have an effect.
'In the United States, signs of the end of the rush for LNG projects begin to show: no new project has applied for an export license to the Department of Energy during the quarter (this had not happened since Q1 2011), the first withdrawal from the FERC process by a project was announced by Excelerate Energy, and more FID schedules are facing increasing delays.'
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