LNG

Not a single US LNG cargo transited the Panama Canal during the first three weeks of November, according to S&P Global Commodities at Sea data, as the arbitrage window prompted most tankers to head to Europe rather than Asia.

Burning LNG to balance renewable energy is ‘key’ to exit coal-fired power generation in Asia, a new study by S&P Global Commodity Insights finds. The average lifecycle carbon intensity for LNG sourced from Australia, the US and Qatar and used for electricity production in the study countries was 47% lower than for coal.

Several LNG buyers seem happy to pay a premium for supply from Australia and the U.S. Forward prices, imply Asian LNG buyers pay above the variable cost of U.S. LNG delivered ex-ship which, according to S&P analysts, “is not what you would expect in an oversupplied market.”