Britain usually finds a decline in natural gas during summer, however, this season a record number of LNG tankers due to land were observed.
The cargoes that are incoming show no sign of slowing and are expected to keep the pressure on benchmark prices that are already trading below their five-year seasonal average.
In the context, Murray Douglas, a research director for European gas at Wood Mackenzie Ltd. stated that the global LNG market was strong, and they would still have lots of LNG turning from the Asian to the European markets and they would still see lots of LNG deals.
The extensive infrastructure and traded hubs facilitate the cargoes that are heading to the U.K. and other northwest European nations as they can absorb the global surplus and also handle the growing worldwide production boom. And, Britain was able to take imports even after its gas export pipeline reportedly shut for repairs this month.
Meanwhile, Asian LNG spot prices reportedly regained their traditional premium over European hubs. And, Atlantic basin suppliers such as the U.S. and West Africa are still sending cargoes to Europe, which is their nearest liquid market.
According to Leslie Palti-Guzman, president and founder of consultant GasVista LLC in New York, U.S. President Donald Trump may reportedly use Europe’s increased appetite for LNG to augment his country’s fuel in the region when he visits the U.K. in June. Palti-Guzman reiterated that the surge in U.K.-U.S. trade flow would bode well with the June visit of President Trump to the U.K.
Apart from which, the European Union and the U.S. would be holding a forum in Brussels on May 2 to discuss bringing natural gas that originated from shale fields in the U.S. to nations from Germany to Greece.