Incoming LNG shipments down sharply, prices rise globally

LNG shipments into Greece are headed for a quieter period following heightened recent trading activity that put this energy source at the domestic sector’s forefront in the first half of 2020, overshadowing pipeline gas supply.

Latest activity indicates a swing in favor of pipeline gas, now favorably priced.

Last November, 18 tankers docked at gas grid operator DESFA’s Revythoussa LNG terminal just off Athens, bringing in a total amount of 1.5 million cubic meters of LNG, well over the schedule for this coming November, limited to three tankers booked for a total of 355,000 cubic meters.

Activity at the Revythoussa terminal was also subdued last month. Four LNG tankers brought in a total quantity of nearly 300,000 cubic meters.

LNG prices at the Dutch gas trading platform TTF, one of Europe’s biggest hubs, have risen constantly, as is the case internationally, following a dip in July.

Analysts believe rising demand in Asia, especially China, will make up for anemic demand in Europe and push LNG prices even higher as winter approaches.

Pipeline gas supply is expected to reassert its position in Greece.

Higher LNG prices prompting pipeline gas resurgence

Increased LNG prices, well above levels registered in 2019 and the first half of 2020, promise to bring about market changes, including a decrease in the high level of imports witnessed over the past few months.

LNG prices are currently double those registered at the beginning of this year, reaching 4 dollars per 1000btu from 2 dollars per btu.

The period of lower LNG prices in the market appears to have ended, officials have noted.

This development promises to bring about a pipeline gas resurgence following LNG’s dominance in the Greek market over the past year and a half, driven by record-low price levels.

LNG prices fell to extremely low levels as a result of the market availability of significant shale gas amounts from the US as well as new sources, primarily Australian.

LNG prices now appear to be steadying at higher levels.

The prospect of a pipeline gas rebound is also being helped by a stabilization of oil prices at low levels, containing oil-indexed pipeline gas prices and reinstating the competitiveness of pipeline gas.

The market fluidity caused by the pipeline gas and LNG price shifts has increased the work challenge for gas traders, affecting their ability to make forecasts.