LNG exports

Global gas fundamentals are expected to tighten considerably this winter and over the long term, but U.S. liquefied natural gas (LNG) could face another painful summer in which cargo cancellations mount as early as May.

In a research note released Monday, Raymond James & Associates Inc. analysts said the continued ramp-up of the Chinese economy, lower retail prices in South Korea and nuclear maintenance in Japan all should present tailwinds for the rest of the year for both LNG demand and imports. This supports “a solid rebound” in LNG export utilization rates into winter 2020-21, with the leading indicator of cargo cancellations slowing substantially in recent months.

“We believe U.S. LNG utilization rates pushing back near 90% is realistic,” analysts said.