Prof. ST Hsieh
Director, US-China Energy Industry Forum
January 14, 2023
Natural gas is clean fossil energy, so it is good news that the global LNG market broke a record in 2022. It is also good news for US LNG exporter that “In the first nine months of last year, U.S. LNG exporters generated $35 billion in revenues.”
Germany, as the largest economy in Europe, has the deep pocket and human resources to quickly commission a series of LNG terminals. It was reported that Germany’s first floating LNG terminal cost about US$6+billions. Many other European nations will not be able to afford that price tag.
There are also serious concerns that massive US LNG exports to Europe with high profits have already caused domestic gas price increase. It may prompt the US congress to limit the amount of LNG exports.
Natural gas has a global market, but its pricing is more complicated than crude oil. First the pipelined gas and LNG have different contracts and pricing structures. It has been further complicated after the broke out of Ukraine war last February as Europe quickly sanctioned off Russian pipeline gases. Thus, Europe is a captive market for US LNG exporters. What will happen after the Ukraine war so over?
China is exiting out of tight COVID pandemic control, it will inevitably demand more energy imports from global market. LNG will be hot…
Germany opens its 2nd liquefied natural gas terminal
ByThe Associated Press January 14, 2023, 6:52 AM
BERLIN — Germany on Saturday inaugurated its second liquefied natural gas terminal, part of a drive by Europe’s biggest economy to put reliance on Russian energy sources firmly behind it.
Chancellor Olaf Scholz took part in the ceremony in Lubmin on the Baltic Sea coast, which came less than a month after he inaugurated Germany’s first LNG terminal at Wilhelmshaven on the North Sea. Several more are expected to go online in the coming months, including another in Lubmin.
Scholz lauded the speed at which the first terminals were built and said a special regasification ship needed for Germany’s third terminal, at Brunsbuettel on the North Sea coast. will arrive next week.
First LNG cargo arrives at Germany’s LNG terminal in Wilhelmshaven
January 3, 2023·4 min read
ARLINGTON, Va. and DÜSSELDORF, Germany, Jan. 3, 2023 /CNW/ — Today, Uniper brought Germany’s first full cargo of liquefied natural gas (LNG) to the new LNG terminal, operated by Uniper, in Wilhelmshaven. The LNG ship Maria Energy, owned by Tsakos Energy Navigation, a major energy mover, was loaded in Calcasieu Pass, USA, at the liquefaction facility of the LNG supplier Venture Global Calcasieu Pass, LLC, on December 19, 2022.
Global LNG Imports Hit A Record High In 2022
By Tsvetana Paraskova – Jan 12, 2023, 5:02 AM CST
- In 2022, global liquefied natural gas volumes hit a record high, driven by Europe’s scramble to replace Russian pipeline gas.
- Total LNG imports in 2022 hit 409 million tons compared to 379.6 million tons the year before.
- Europe was the premium market for LNG in 2022, but returning demand from Asia is likely to make markets more competitive this year.
Global imports of liquefied natural gas (LNG) hit a record high of 409 million tons last year, as Europe scrambled to replace Russian pipeline gas supply and outbid Asia to draw the majority of cargoes.
The global LNG imports of 409 million tons in 2022 were up from world imports of 386.5 million tons in 2021, per data from Refinitiv quoted by Reuters’ Asia Commodities and Energy Columnist, Clyde Russell.
While Asia was the primary destination of LNG in previous years, Europe emerged as the premium market for liquefied natural gas as it seeks to replace Russian pipeline gas supply. Europe is estimated to have imported nearly one-quarter of all LNG traded last year, winning the competition with Asia, as European benchmark prices surged after Russia started cutting off pipeline supplies to most of its customers to the west.
In 2022, the EU’s imports of LNG hit 101 million tons, which was a 58% surge compared to 2021, per data from Refinitiv cited by the Financial Times.
Much of the European LNG imports were aided by lackluster demand in Asia, where China saw a rare drop in gas consumption amid a slowdown in economic growth, while most of South and Southeast Asia simply couldn’t afford the skyrocketing spot LNG prices.
Freeport LNG Denies Reuters Report Claiming Further Restart Delay
By Charles Kennedy – Jan 11, 2023, 12:40 PM CST
Freeport LNG has denied the rumors attributed to unnamed sources, with a spokesperson telling Oilprice.com that “There is no change to our restart timeline. We are still targeting the second half of this month for the safe, initial restart of our liquefaction facility, pending regulatory approvals”.
Freeport accounts for some 20% of total LNG exports from the United States.
In the first nine months of last year, U.S. LNG exporters generated $35 billion in revenues, most of which came from European importers stocking up to avoid an energy crisis spurred by Russia’s invasion of Ukraine and Western sanctions.