The Maritime Executive: COVID-19 Downturn Arrives for LNG Terminals

31 May 2020

Heavily-oversupplied European gas markets and high storage utilization mean that EU hub indices are now trading in the range of $1 per MMBtu, and the key index for Japan and Korea has fallen below $2.00 – leaving little room when the U.S. Henry Hub price is at $1.80. This means that LNG export terminals are now dialing back production, data from Natural Gas Intelligence shows. IHS Markit predicts that utilization at U.S. export terminals could fall from highs near 100 percent to as little as 50 percent by the summer. According to a new forecast from market research firm Poten and Partners, as many as 130 cargoes from U.S. terminals could be canceled between May and October.

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