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PIRA provides LNG update

LNG Industry,

PIRA Energy Group said that LNG supply length is feeding niche North American demand in its weekly natural gas analysis.

Both Mexico and Puerto Rico have witnessed very strong LNG demand growth this year, but this, PIRA said, begs the question of whether the growth came from stronger demand or simply as a result of the fact that LNG had nowhere else to go at a higher netback. The truth, PIRA concluded, lies somewhere in between; as Mexican gas demand is capable of quick growth, but this is dependant on the gas being priced at a bearable level. US prices provide such a level, but the same cannot always be said for LNG imports, particularly when the parties involved have a better netback option elsewhere and a right to divert the cargo.

Source: PIRA Energy Group

Edited by Ted Monroe

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