LNG Market Analysis for July

Share on twitter
Share on linkedin

Global exports of liquefied natural gas in July totaled approximately 30.7 million tons on board 507 vessels, considerably higher than July 2018’s pace of 26.7 million tons. Approximately 30.5 million tons arrived on 514 vessels at import terminals in July, compared to 26.5 million tons in July 2018.  China has only received two cargoes from the US so far in 2019, with the last cargo discharging at CNPC’s Jiangsu LNG terminal back in March.

Northeast Asia took in 15.7 million tons of LNG in July, a 6 percent increase from July 2018.  For South Asia, the 3.4 million tons in imported in July represented a 25 percent increase from year-ago levels. Ship-to-ship transfers at Honningsvag in Norway, commissioned only in November, dropped to zero as a result of Russian gas producer Novatak’s announcement that it would shift STS activity to Russian waters. Novatek had relied on Honngingsvag as an STS point for LNG cargoes.

The Asia-Pacific region imported about 7.6 million tons of LNG in July, approximately 1.1 million tons more than in June and up 10 percent year-on-year. Exports from the Middle East came in at 8.6 million tons, an increase from the June pace of 8.1 million tons.

US exports in July increased by 55 percent on a year-over-year basis to 3.0 million tons, slightly lower than the volume from June. Northern Russia loaded 1.51 million tons, lower than June’s level of 1.55 million tons, but a jump from the 0.4 million tons loaded in July 2018, a result of expansion.

LNG export terminal utilization based upon ClipperData shipping tracking is given below:

Along with country-wide LNG import terminal utilization:

India imported 2.3 million tons of LNG in June, with 36 vessels arriving at different terminals across the country. Petronet procured 14 vessels, while there were five for Gail, four each for GSPC and Reliance, two each for IOC, Essar Steel, Torrent Power and Shell Energy, and one for BPCL. In terms of suppliers, the Middle East was the largest, sending 22 cargoes, followed by West Africa with eight.

Pakistan imported 11 cargoes of LNG last month, with six cargoes going to Pakistan State Oil and five going to Pakistan LNG. Price analysis based upon customs data of India and Pakistan is illustrated below: