From the editor: Normalisation looms for expanding LNG market [Gas in Transition]

From the editor: Normalisation looms for expanding LNG market [Gas in Transition]

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Natural Gas News
From the editor: Normalisation looms for expanding LNG market [Gas in Transition]

Summary

LNG prices are likely to remain above the average of recent years not impacted by exceptional events, but will trend down in order to re-stimulate lost demand for the fuel. by: Ross McCracken

Spot LNG prices have continued to move marginally lower in January, despite the threat of LNG carriers (LNGCs) transiting the Red Sea being struck by missiles launched by Houthi rebels in Yemen. Some major users of the Red Sea/Suez Canal route, such as Qatargas, are re-routing ships. Around 8% of the world’s LNG trade typically passes through the Suez Canal, but unlike some other strategic maritime chokepoints, ships unwilling to take the risk have alternatives. Taking these will cause delays and tie up vessels on the water, reducing LNGC availability and pushing up shipping costs at a time when both the supply of and demand for LNG are high. However, not only have spot prices failed to react, but futures prices indicate that traders are expecting a su...