"The U.S. may receive as much as 1.5 billion cubic feet a day of LNG next month, based on shipping schedules and commissioning of the Sabine Pass, Texas and Northeast Gateway terminals, according to Nieuwoudt."
Well, we better get much more than that in future months as 1.5 is 550 a year--less than any of last 4 years. I am sure we will pull some additional cargoes at $9-10 but the simple facts are (1) there really isn't that much LNG that is not committed this year, (2) Japan and Korea are buying spot at high prices, (3) Europe is still willing to pay more than us, (4) the US still is the market of last resort and furthest from major suppliers with highest shipping costs, and (5) analysts were expecting far, far more this year. Heck, RJ was up to 1300 just a few months ago I believe. As an aside Pickering has a sorry record of LNG analyses. They must have a weak analyst in that slot. My feeling is the NG situation is grim. We have built this huge infrastructure of demand, we keep digging the hole and hoping for weather to bail us out. But NG is now $9.14 with increased domestic production, stable Canadian imports and record LNG last year. Tells you something: "There ain't enough NG" -- Frank |
