RUS | ENG | All
Enter the email or login, that you used for registration.
If you do not remember your password, simply leave this field blank and you will receive a new, along with a link to activate.

Not registered yet?
Welcome!

2021-01-12 11:25:00

U.S. LNG FOR ASIA UP

U.S. LNG FOR ASIA UP

PLATTS - 11 Jan 2021 - US LNG export terminals were operating near capacity Jan. 11 as the spot price for deliveries to Northeast Asia approached a staggering $30/MMBtu amid ongoing supply constraints and strong winter demand.

The benchmark S&P Global Platts JKM has soared to a record high from a record low in less than nine months. 

The current trend suggests that Asia will remain the top destination for US LNG for months to come, following robust deliveries to the continent in 2020. Three of the top five destinations last year for US LNG, including No. 1 South Korea, are in Asia, Platts Analytics data showed. 

Despite the coronavirus pandemic's impact on demand last summer and widespread cancellations of US cargoes between April and November, total US LNG exports rose by 27% year over year in 2020, with 667 LNG cargoes delivered. 

South Korea, the top buyer of US LNG last year, imported 86 US cargoes, a roughly 10% build over 2019, Platts Analytics data showed. Japan retained its position as the second-largest buyer of US LNG, taking 71 cargoes in 2020, a 31% build from 2019. 

Spain was No. 3, followed by the UK at No. 4. China, at No. 5, imported 44 US LNG cargoes in 2020, a 10-fold increase over 2019. While tariffs were still in place, China granted waivers to importers, allowing US deliveries to resume in April 2020 following a 13-month pause.

The six major US liquefaction terminals continue to keep utilization high amid the surge in prices for Asia-delivered cargoes.

Feedgas deliveries totaled 10.92 Bcf/d on Jan. 11, about 600 MMcf/d below the record high of 11.56 Bcf/d set Dec. 13, Platts Analytics data showed.

FEEDGAS DELIVERIES TO U.S. LNG EXPORTS TERMINALS  2020 - 2021

The JKM for February was assessed $6.768/MMBtu higher from Jan. 8 at $28.221/MMBtu on Jan. 11. Beyond the general market trends affecting prices, some Japanese importers worry they may face an inventory shortage in January or February, should upstream supply issues or disruption in supply chains worsen.

Virtually all of the proposed second-wave North American liquefaction projects struggled in 2020 to secure sufficient long-term supply deals to make a final investment decision and advance to construction. Across the continent, Sempra Energy's Energia Costa Azul export project in Mexico was the only one to take FID during the year.

Commercial outlook

Developers have blamed travel restrictions amid the pandemic for making deals harder to reach, as well as volatile commodity prices for making buyers uncertain. They are hoping that if the run-up in the JKM is sustained, buyers will be encouraged to sign new deals to mitigate their cost risk.

"Certainly serves as a reminder of how tight the market can get, after being lulled into semi-permanent pessimism amid consecutive warm winters over capacity and the pandemic," said Michael Webber, managing partner of investment research firm Webber Research & Advisory. "Between this reminder, that global LNG markets were closer to balance than many assumed, and the immediate supply curve sliding back amid consistent project slippage around the world, the outlook for LNG certainly looks more constructive."

At the same time, buyers and investors will be smart and competitive about their options, Webber said.

"The days of a significant, blind bid into public greenfield companies are over, but the renewed attention could breathe new life into some of the better positioned projects," he said.

-----


Earlier:

U.S. LNG FOR ASIA UP
2021, January, 8, 15:20:00
U.S. LNG EXPORTS 9.8 BCFD
U.S. exports of liquefied natural gas (LNG) set a new record in December after a record-breaking November 2020, averaging 9.8 billion cubic feet per day (Bcf/d),
U.S. LNG FOR ASIA UP
2020, December, 23, 13:05:00
U.S. LNG UP
Natural gas futures in Europe and Asia have climbed to their highest levels in more than a year due to a sharp increase in demand late in 2020,
U.S. LNG FOR ASIA UP
2020, December, 17, 13:45:00
U.S. LNG EXPORTS UPDOWN
Several factors contributed to the increase in U.S. LNG exports in recent months.
U.S. LNG FOR ASIA UP
2020, December, 15, 14:10:00
U.S. PRODUCTION: OIL (-137) TBD, GAS (-744) MCFD
Crude oil production from the major US onshore regions is forecast to decrease 137,000 b/d month-over-month in December from 7,575 to 7,438 thousand barrels/day, gas production to decrease 744 million cubic feet/day from 81,521 to 80,777 million cubic feet/day .
U.S. LNG FOR ASIA UP
2020, December, 10, 11:50:00
U.S. LPG FOR ASIA IS STABLE
The ample US shipments come as Chinese petrochemical sector demand for propane feedstock held firm amid high domestic prices of propylene,
U.S. LNG FOR ASIA UP
2020, December, 8, 12:50:00
U.S. LNG EXPORTS UP
LNG suppliers are continuing to respond to the uptick in demand and prices with the US now exporting at historically high volumes.
All Publications »
Tags: USA, GAS, LNG, ASIA