Gas Processing & LNG is Produced by Gulf Publishing Holdings LLC



LNG produced at the Yamal project in Siberia, according to Bloomberg, is now reported to be headed to  U.S. northeast, which experienced a spike in prices for natural gas during a sustained period of unusually cold weather, raising heating demand and sending domestic gas prices soaring for a few days.

This load of LNG first went to the UK on a French-flagged tanker, briefly stored at Isle of Grain terminal, then was reloaded Jan 7 and is due to arrive in Boston on Jan 22. Note it is not clear who actually owns the re-exported cargo. i.e. who is the trader behind this latest deal? The operator of the storage facility would not comment It is believed that Petronas LNG UK brought the original load to the UK, but was it resold to another trader?

So, why is this newsworthy? For two reasons. First, Yamal LNG is a joint venture between Novatek PJSC (Russian), Total SA (French) and China National Petroleum Corp.  The project went ahead, despite USA federal government financial sanctions in 2014 because of Russia’s involvement in the Ukrainian crisis. So some in the news media are describing this as a “sanctioned” cargo.

Second, the USA is now increasingly an exporter of LNG, for example from Louisiana, and soon Texas and Maryland. So why wasn’t a need for LNG supplied domestically? A quote from the Oxford Institute for Energy Studies helps to clarify: ““The market shouldn’t see any irony in this cargo going to the USA. It’s a normal trade, LNG is supposed to travel globally to where the demand is.”

This is not the first LNG reload into the USA – in June 2014 a cargo came from Huelve terminal in Spain.Yamal LNG


Copyright © 2018. 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
-Adrienne Blume
As discussed in the HPI Market Data 2019 report, published in November by Gas Processing & LNG’s sister publication, Hydrocarbon Processing, rising propane and ethane supplies in the US have been enabled by greater production of shale gas.
Industry Trends: Norway targets global LNG market
-Eugene Gerden
Norway aims to become a leading player in the global LNG market during the next several years through the establishment of new, large-scale LNG terminals.
Regional Focus: Challenges of scaling up Africa’s LNG production
-Shem Oirere
Several gas projects are underway in Africa, but they continue to be constrained by inadequate infrastructure, slow finance mobilization, lack of security and uncertainty over hydrocarbon regulations that are casting doubt on the outcome of the continent’s drive to meet its anticipated 128% gas demand increase by 2040.


GasPro 2.0: A Webcast Symposium

Register Now

The global LNG industry is becoming increasingly interconnected as grassroots export projects get off the ground. Another technology route for processing gas into fuels—GTL—is attracting renewed attention due to improving economics. Small-scale solutions for both LNG and GTL are at the forefront of new technological developments, while major projects using more conventional technologies continue to start up around the world.

During this webcast, we will focus on LNG, GTL, gas processing technology developments and deployments, operations, small-scale solutions, transportation, trading, distribution, safety, regulatory affairs, business analysis and more.

October 25, 2018 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.
© 2018 Gulf Publishing Holdings LLC.