Sendout from natural gas terminals in the US rose above 3 billion ft3 as US LNG terminals sent gas into grids to compensate for cold weather demand. The volumes are the highest seen since August 2007, when US LNG sendout reached a record high of 4 billion ft3.
The record sendout levels and associated US LNG price increases has led to an increasing number of LNG cargos being routed to the US by suppliers looking for the best netback. Last year they were favouring Britain but US gas futures are now above US$ 6 per million Btu, having seen a 15% increase since December.
Qatar, the world’s largest producer of LNG, is increasingly targeting the North American market because of the price rises. US terminals are seeing the most action they have in months with the Cove point terminal (Maryland) alone receiving two shipments this week, equaling the number it normally receives in a month.