A roundup of news and commentary from NGI’s LNG Insight

  • Prompt European natural gas prices have fallen precipitously and are testing $1.00/MMBtu as NBP finished Friday at $1.158 and TTF closed at $1.249. Gas in underground storage on the continent is near 70% of capacity.

 

  • “Despite the record low prompt gas prices, a combined 12 LNG cargoes are set to unload in Dutch, UK, and Belgian ports within the next two weeks, deepening the current oversupply,” said Schneider Electric analyst Balint Balazs on Friday. Major maintenance has been delayed due to the pandemic, which he said could result in higher pipeline flows to the continent this summer.

 

  • Given the arbitrage economics, U.S. export terminals have received requests to cancel up to 45 cargoes in July, according to traders surveyed by Bloomberg. About 30 cargoes have already been canceled for June, according to a tally last week from Poten & Partners.

 

  • NGI’s U.S. LNG Export Tracker: Feed gas deliveries to U.S. terminals have fallen from levels over 9 Bcf/d this year to less than 6 Bcf/d over the last week or so.

 

  • “The inevitable has happened,” said IHS Markit’s Terrell Benke, executive director. “U.S. LNG capacity utilization has begun a turndown in response to market forces exacerbated by Covid-19. We are witnessing an historic event where U.S. LNG is taking on the new role of swing supplier.”