Analysis: Gas Prices Are Only One Factor Affecting LNG Cargo Destinations
Posted on Oct 1, 2007 in Markets and Competition | Comments Off on Analysis: Gas Prices Are Only One Factor Affecting LNG Cargo Destinations
Analysts with Barclays Capital released a report Friday that concludes that U.S. gas prices are not the sole factor determining the final delivery destinations for LNG cargos. The report also cites factors such as spot cargo availability, relative attractiveness of the U.S. market, flexibility of LNG delivery contracts, and compatibility between available LNG vessels and facilities at certain regasification terminals. Platts LNG Daily also reports that Barclays’ analysts predict that the U.S. gas price will continue to play a relatively small effect on overall LNG delivery trends to the United States. [Subscription required]