Storage Capacity and High Futures Prices Spur Imports
Today’s World Gas Intelligence reports that U.S. LNG imports have increased 77% over this time last year, despite offering the lowest netbacks in the world. The Lake Charles terminal anticipates receiving volumes this month that are three times greater than those received in May 2005; at Elba Island, sendout is expected to exceed by 65% last year’s May total.
WGI attributes rising import levels in the US in part to high futures prices and the substantial amount of available capacity to store regasified LNG until winter when prices are expected to be significantly higher. Lake Charles currently has capacity to store 9 Bcf and Elba Island 4 Bcf; by contrast, WGI says that the UK lacks significant storage capacity, and that in Spain vessels are waiting days to unload their cargos. [Subscription required]