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LNG Industry reports that Europe may absorb more LNG in 2018 as global liquefaction capacity grows. Analysts say pipeline suppliers such as Gazprom may need to lower prices to keep out uncommitted cargoes.
The piece gives a UK NBP premium over Henry Hub of about US$1 to $1.45/MMBtu as the range that would attract or deter US LNG.
Growing LNG supply into Europe increases competition and tends to cap gas prices, which lowers the cost of gas-based fertilizer and processing. The effect on feed markets is limited and gradual.
lngindustry.comJoseph GreenFeb 3, 2017After 24 past bearish trade events, Natural Gas moved a median +2.8% over 5 sessions (54% higher; middle half -4.5% to +7.3%), and -1.2% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
