Energy industry officials revealed that the significant rise in U.S. natural gas prices caused many liquefied natural gas exporters to cancel shipments for export and sell them on the local market, as spot gas prices soared to more than $30 per million British thermal units on January 27 and plummeted to about $9 per million British thermal units the next day, according to an S&P Global report.
Production discontinued
February U.S. gas contracts at Nymex hit $6.954 per million British thermal units on Jan. 27 as severe cold snaps and production outages at some wells reduced gas flows to major liquefaction plants in the Gulf.
All eight major US liquefaction facilities recorded declines in LNG production.
On the East Coast, Georgia’s Elba Island facility and Maryland’s Cove Point facility transferred loads to local power grids by importing them or converting stored liquefied gas back into natural gas, but some sources expected up to 15 shiploads to be canceled.
Supply concerns
Imported LNG shipments to the United States reached a nine-year high, led by the Elba Island facility, with several cargoes loaded in Trinidad bound for the United States, including a Paris-Knudsen gas tanker that loaded on January 23rd and arrived on Elba Island on January 28th.
Concerns about Europe’s supplies could grow, data showed, with gas stocks in Europe falling by just 44% as of January 26, the lowest seasonal level since 2022.
According to S&P Global’s Million Report, the spot price for a million gas soared to more than $30 per British thermal unit on January 27, before plummeting to about $9 per British thermal unit the next day.The significant rise in US natural gas prices has caused some liquefied natural gas exporters to cancel shipments earmarked for export and sell them on the local market, energy industry officials revealed.
Production stopped
February US natural gas contracts on NYMEX hit $6.954 per million British thermal units on January 27, as severe cold snaps and production outages at some wells reduced gas flows to major Gulf Coast liquefaction plants.
All eight major US liquefaction facilities recorded declines in LNG production.
On the East Coast, Georgia’s Elba Island facility and Maryland’s Cove Point facility are redirecting shipments to local power grids by importing cargo or reconverting stored LNG into natural gas, but some sources expect up to 15 shipments to be canceled.
Supply concerns
LNG shipments to the United States reached the highest level in nine years, led by the Elba facility, and several cargoes loaded in Trinidad headed to the United States, including the gas carrier Paris Knudsen, which was loaded on January 23rd and arrived in Elba on January 28th.
Concerns about Europe’s supply could grow, data showed, with European gas stocks at just 44% as of January 26, the lowest seasonal level since 2022.
