Gas Processing & LNG is Produced by Gulf Publishing Holdings LLC



Russia's Gazprom says global LNG glut pressures global gas prices

Gazprom Smaller

(Image courtesy of Gazprom)

MOSCOW/LONDON (Reuters) - Excessive supplies of liquefied natural gas (LNG) as well as brimming storage have put pressure on natural gas prices in Europe and Asia, dimming forecasts for exports, Russian gas giant Gazprom said.

Demand for energy has been dampened by warm winter weather in Europe as well an outbreak of a new coronavirus in China, which further pressured Asian LNG spot prices LNG-AS to a record low below $3 per million British thermal units (mmBtu) last week.

Elena Burmistrova, head of Gazprom’s exports unit, told a meeting of investors in London that times were hard for all gas suppliers.

“I spoke to our LNG traders this morning, they confirmed the volumes which are “on the water”, and those are unsold volumes, are around 20 million tonnes,” she said when asked for Gazprom’s export forecast.

An analyst with data intelligence firm Kpler told Reuters that 15 LNG tankers were flagged as “floating storage” globally, with 11 of them scattered across Asia as the coronavirus outbreak hit gas demand in China.

The virus has affected about 60,000 people globally and had a wide impact on demand for all kinds of energy

“It’s hard to imagine that all those volumes will not pressure the market,” Burmistrova said.

According to Gazprom Bank, Gazprom’s gas sales to Western Europe, a key source of revenue, fell in January by 26 percent year-on-year.

Exports to Europe last year edged down to 199 billion cubic metres (bcm) from a record-high 202 bcm in 2018, leaving its share of the European gas market at around 36%.


Copyright © 2019. All market data is provided by Barchart Solutions. Futures: at least a 10 minute delay. Information is provided 'as is' and solely for informational purposes, not for trading purposes or advice. To see all exchange delays and terms of use, please see disclaimer.

                                  CMEGroup                                     Icelogo

FEATURED COLUMNS

Editorial Comment: China eyes continued expansion of smaller-scale LNG
-Adrienne Blume
Smaller-scale liquefaction in China, the world’s second-largest LNG importer, has experienced growth in recent years as China’s government integrates more gas into the country’s energy matrix.
Executive Q&A Viewpoint: SeaOne expands South American energy options with Compressed Gas Liquid technology
-Bruce Hall
SeaOne is a midstream infrastructure and logistics company that leverages its patented Compressed Gas Liquid (CGL™) technology to lower energy costs in various markets, generating new opportunities for economic growth and environmental stewardship.


GasPro 2.0: A Webcast Symposium

Register Now

Following the successful GasPro Webcast Symposium in October 2019, the third GasPro Webcast Symposium will take place on October 21, 2020.

The 2019 webcast drew attendees from around the world, with more than 80% of the audience working in company management or engineering divisions.

The 2020 web event will gather experts in the fields of LNG, gas processing and process safety to share market, operations and engineering technology and trends with our audience.

Attendees of the 2020 webcast will learn about market solutions and technology deployments in a number of areas: LNG delivery infrastructure, small-scale desulfurization for NGL, H2S removal for gas treating, process safety for safety instrumented systems, small-scale LNG project design, and advances in freeze component removal for LNG.

October 21, 2020 08:30 AM CDT

Register Now

 

Please read our Term and Conditions, Cookies Policy, and Privacy Policy before using the site. All material subject to strictly enforced copyright laws.
© 2020 Gulf Publishing Holdings LLC.