An unusually active Atlantic hurricane season has tested the resilience of US liquefaction infrastructure that is still in its infancy relative to terminals in more mature exporting nations. Utilization is starting to rise toward pre-pandemic levels, as demand and price recovery in buyer markets in Asia and Europe are incentivizing exports. While the trend could quickly turn around – depending on further storm damage and planned or unplanned maintenance – higher consumption during the approaching winter could provide the commercial lift the industry needs to sanction new projects in 2021. The dynamics reflect the competitive benefits that cheap feedgas and destination flexibility have given to Gulf Coast operators since Cheniere Energy shipped the first LNG cargo from the Lower 48 states from its Sabine Pass terminal in Louisiana in 2016. What a difference 6 months makes A wave of cargo cancellations from US terminals began in April, a few at first, then several dozen a month during the summer. Low international prices and demand destruction due to the coronavirus were to blame. With prices for spot deliveries to Northeast Asia on the rebound as global consumption recovered, cargo cancellations for October were the fewest since May, according to market sources.… continue reading
Continue reading Uptick in US LNG exports a boost for terminals, despite storm challenges. This article appeared first on CTRM Center.
Source: CTRM Center