Nov 2 (LNGJ) - US LNG exports increased last week to seven shipments, five from Sabine Pass in Louisiana and two from Cove Point, according to the weekly natural gas report from the Energy Information Administration. An eighth LNG carrier was lifting a cargo from Sabine Pass through November 1. “The two cargoes exported from the Cove Point terminal were the first exports since the facility resumed LNG production after three weeks of scheduled maintenance,” said the report. The EIA also noted that the average January 2019 futures contract price is trading at a lower premium to the average spot price than last year at this time.
Price differences between the spot price and the futures price on the New York Mercantile Exchange “indicate limited economic incentives for injections into working gas” storage. “During the most recent storage week, the average natural gas spot price at the Henry Hub was $3.26 per MMBtu, and the Nymex futures price of natural gas for delivery in January 2019 averaged $3.33 per MMBtu, 7 cent per MMBtu higher than the spot price. A year ago, the January contract was 37 cents per MMBtu higher than the spot price,” it said.
