NYC-based PIRA Energy Group believes that Europe’s stricter LNG diet will continue in the weeks and months ahead. The loss of Egyptian and Nigerian LNG volumes will offer more price support in Asia than in Europe.
Europe’s stricter LNG diet will continue in the weeks and months ahead, creating additional supply for South American and Asian markets. Spanish buying patterns scheduled for February and March suggest another three to five cargos will be diverted relative to the amount seen since the beginning of October. Between now and the 2Q13, Spanish gas demand typically drops, which leads to cuts in imports.
Will the Loss of Egyptian and Nigerian Volumes Offer Support in the Months Ahead?
One key question going forward is whether the loss of Egyptian and Nigerian volumes will eventually offer price support in the months ahead.
In PIRA’s view, the losses will offer more support to Asian prices than European prices because Asian markets rely more on these LNG supply sources than do European buyers. PIRA sees this pattern continuing in 2013.
[mappress] LNG World News Staff, February 14, 2013