LEAD STORY
Presidential race unlikely to stall US shale industry growth
Written by AJ KotzeBickering between the US Vice President Kamala Harris and former President Donald Trump in the run-up to Election Day is not hampering the steady growth of the American shale gas industry and LNG majors. Focus on profitability and shareholder returns – rather than production growth – means the industry is unlikely to be influenced by promises of support or potential regulations from either candidate; our Correspondent Anja Karl was told.
Drop in JKM-TTF spreads for bal-winter JKM seems ‘overdone’
Written by AJ KotzeLNG price spreads between the Japan Korea Market (JKM) and the Dutch Title Transfer Facility (TTF) for balance of winter 2024/25 contracts have fallen, but analysts reckon “this drop is overdone.” Analysts expect the JKM-TTF spread will rise above US shipping differentials via the Panama Canal, opening the arbitrage for US spot cargoes to head to Asia.
Spreads narrowed to $0.53 per million British thermal units (MMBtu) in recent days, down from around $1.13/MMBtu in mid-September – with little fundamental change. Though freight rates have fallen, key US shipping differentials via the Panama Canal have delinked only by an average $0.18/MMBtu month-on-month, writes our Markets Editor, Anja Karl.
Also in this issue
Global LNG faces short-term demand weakness amid warm weather, while supply delays and geopolitical tensions cloud the longer-term horizon. Yet market fundamentals remain strong, writes our Markets Editor, Dr Alexander Wilk.
The global LNG market is at a pivotal juncture, characterised by a complex interplay of supply delays, ongoing demand growth – particularly from Asia – and geopolitical tensions. As the industry grapples with these multifaceted challenges, stakeholders are reassessing strategies to navigate a landscape marked by potential volatility and transformative shifts.
Global LNG supply growth, but demand in seasonal transition
Written by AJ KotzeOur October data for the month-to-date showed a small LNG trade increase globally. Meanwhile, demand was weighed down by decreases in the Middle East, Asia and South America, our Market Editor Dr Alexander Wilk reports.
According to our data on 27 October, global LNG exports for the month-to-date amounted to 29.57mmt and were thus up by 0.81mmt (3 percent) from the 28.76mmt we recorded for the month to 27 September.
The need for fully automated LNG Custody Transfer Measurement Systems (CTMS)
Written by AJ KotzeCustody transfer refers to the process of transferring ownership and responsibility of a product or commodity from one party to another.*
It involves the transfer of physical possession, as well as the associated rights and obligations related to the product. Custody transfer is commonly applied in industries such as oil, gas, petrochemicals, and utilities, where the accurate measurement and verification of quantities and qualities of the transferred material are crucial for commercial transactions and accountability.
Mobile LNG solutions target emerging transport markets
Written by AJ KotzeAs the transport sector grapples with the need to balance efficiency, sustainability, and energy security, LNG is slowly emerging as a leading fuel choice thanks to a range of novel solutions. Fuelling Editor Malcolm Ramsay has more.
Although mobile LNG technology was once viewed as too bulky to be practical, recent design improvements have made it possible to enable quick refuelling and reduce reliance on traditional fuel sources.
A round-up of latest events, company and industry news
Written by AJ KotzeALTAMIRA: The LNGC, ‘Energos Princess’, began discharging at Rotterdam’s Gate terminal on 15th October, marking the first LNG import from Mexico to Europe, according to data from S&P Global Commodities at Sea.
The vessel loaded about 59,000 tonnes of LNG at New Fortress Energy's (NFE) Altamira LNG project in Mexico.
