Europe cuts LNG imports by 40% in November compared to last year

21:39, 02 December 2020
Europe cuts LNG imports by 40% in November compared to last year Photo: Nikolay Gyngazov/Global Look Press

In annual terms, the volume of liquefied natural gas (LNG) supplies to European terminals decreased by 39% in November.

However, the supply volume showed a 12% increase compared with October - 6.704 billion cubic meters against 5.97 billion. The October figure was the lowest record of the last two years, according to Gas Infrastructure Europe.

In September compared to August, and then in October compared to September, supplies decreased, despite the seasonal trend of consumption growth. All European countries with receiving terminals, including Poland (minus 3.6%) and Lithuania (minus 34%), reduced LNG imports in November, compared to the same month of 2019.

The US delivered five LNG tankers to continental Europe in November. Two vessels arrived in the Netherlands and Belgium each, one in France. In October, the US sent three tankers to the Netherlands and one to France, Bloomberg reports.

In November, 10 American tankers arrived in the UK at once, while there were no deliveries a month earlier. Once almost a monopolist in LNG supplies to the United Kingdom, Qatar almost left both the continental European and British markets in November. These consumers received only one Qatari tanker.

The Asian market regains its reputation as the main magnet for spare LNG volumes as the economic crisis caused by the coronavirus pandemic is overcome. Forward quotations for January 2021 on the Asian Japan-Korea Marker (JKM) ($248 per thousand cubic meters) exceed the quotes of the Dutch TTF ($190) by 40%.

A fleet of around 20 tankers laden with US crude oil is expected to leave for Asia this month as the region continues to outpace the rest of the world in its recovery from the COVID pandemic, reported earlier citing Bloomberg.