PIRA Energy Group believes that Atlantic Basin 1Q13 shortfalls could help stem the seasonal drop in Asian LNG spot price assessments. In the U.S., gas pipeline access to Southeast electricity generation is increasing.
Specifically, PIRA’s analysis of natural gas market fundamentals has revealed the following:
New, across-the-board supply shortfalls emerging from the Atlantic Basin in 1Q13 could help stem the seasonal drop in Asian spot LNG price assessments, which have been weakening over the past several weeks in anticipation of warmer weather. At the same time, European spot prices have been strengthening, which will temporarily bring high spot flows to Europe back into play for struggling Atlantic Basin producers.
Access to Southeast Electric Generation Increasing
PIRA’s Reference Case foresees the U.S. Southeast gas demand besting growth in all other major regional markets. Overall, there are 12 pipeline projects scheduled to be in service before 2018. Nearly all projects target electricity power market growth, and PIRA expects most, if not all, will be built.
[mappress] LNG World News Staff, March 20, 2013