3rd Russian LNG shipment to USA to arrive 26th July

(Translated from Ukranian)

WHY THE THIRD TANKER WITH RUSSIAN LNG GOES TO THE US SHORES

Another tanker with liquefied natural gas (LNG) of Russian descent is moving to the US coast. According to the navigation portal, the gas truck should reach America on July 26. This will be the third LNG shipping from Russia this year. Experts note that the US is profitable to buy cheaper gas now to export its own LNG to the growing markets of the Asia-Pacific region.

ICIS editor Ruth Liao said on Twitter that on board Russian gas originated on Twitter.

"It looks like the third LNG party from Russia with overload in Europe is already heading for the American terminal Everett aboard Gaslog Hong Kong gas pipeline," she wrote.

According to Marine Traffic, Gaslog Hong Kong left the port of Amsterdam, where the gas carrier Boris Vilkitsky arrived earlier, transporting LNG from Yamal to Europe. Both ships left the Dutch port on July 18. The first went to the United States, the second to Sabet.

The previous two deliveries to the US gas of Russian origin came in the winter. Due to strong cooling, the demand for gas in the eastern states has risen sharply, and prices have risen to $ 6.3 ths for 1 thousand cubic meters. Against the backdrop of peak demand and constraints on the throughput of domestic gas pipelines, American companies were forced to enter the market for more energy-efficient prices. What was the re-exported Yamal gas from the EU.

The first Russian LNG tanker arrived in Boston at the end of January this year from the British state of Kent, where the Isle of Grain terminal is located. There, the gas from Yamal was delivered by the gas tanker Christophe de Margherie, the LNG was unloaded into the terminal's storage, and then pumped back to Gaselys tanker of the French company Engie. The tanker traveled to the US with adventures: first he, shortly before reaching the destination, turned around and floated into Spain, and the next day he repeated his maneuver and again took his course to Boston, after which he stood for several days in the waterways of the port.

The second tanker, Provalys, brought the Yamal LNG pipeline from Dunkirk to the US, where he was previously overloaded with a Russian tanker.

The "piquancy" of supplying the Yamal LNG adds the fact that Novatek and Gennadiy Timchenko are subject to US sanctions.

"I would not call this gas Russian because it was not bought directly in Novatek. Gazprom is also reselling gas from Central Asia, but nobody calls it Uzbek or Kazakh, "says Michael Corchemkin, director of East European Gas Analysis.

According to the EurAsiaDaily portal, the owner of the gas may, like in previous times, act as the French Engie, which is still owned by the Everett terminal, or Total.

In the case of the first Yamal LNG tanker, with the LNG load in Sabetta on Yamal, the owner of the gas was a Malaysian company Petronas, and after it was several times resold.

In fact, by the time of its arrival in the United States, the gas was not formally related to Novathek, a Yamal LNG operator.

Meanwhile, simultaneously with the import of gas from Yamal, the United States is increasing its LNG exports.

In 2016, the United States became the net exporters of gas for the first time on an annual basis and intends to increase the volumes of exports of "blue fuel". US Energy Information Administration (EIA) predicts 2018 increase in leakage capacity in the country: it is expected that the Cove Point terminal in Maryland will be fully operational, production will be started at Elba Island in Georgia, and by the end of the year it will also work The first line of Freeport in Texas with a capacity of 0.7 billion cubic meters. feet per day.

The United States plans to take a larger share of the European gas market, actively supplying its LNG to Asia and South America. However, this does not prevent them from importing gas at favorable price conditions.

Currently, the LNG market in the world is very diversified, the interests of US manufacturers are now more targeted to Asia, where pricing for sale is much more profitable than domestic. Accordingly, we are seeing such an ambiguous picture of the migration of LNG from one continent to another, explains Dmitry Zharsky, Director of the Veta Expert Group.

Share this post


Link to post
Share on other sites

This sounds paradoxical, really. Unless it's fake news, that is.

  • Like 1

Share this post


Link to post
Share on other sites

2 hours ago, Marina Schwarz said:

This sounds paradoxical, really. Unless it's fake news, that is.

Reminds me of Australia importing LNG for local use in Oz, while contractually exporting huge amounts of LNG to other countries.

Share this post


Link to post
Share on other sites

That's right. But I had no idea U.S. producers have tied the long-term contract knot so tightly.

Share this post


Link to post
Share on other sites

(edited)

How cheap could Russia produce to compete with growing US LNG exports?

Edited by Simon Hauser
  • Like 2

Share this post


Link to post
Share on other sites

(edited)

I suspect this has less to do with the prices of LNG in US Vs. Russia and more to do with the Jones act.  Assuming pipelines from the South to the North East are at capacity, the only option is shipment by LNG carrier; however the Jones Act requires that ships carrying cargo between 2 US ports must be US owned and US crewed.  I suspect the number of LNG carriers meeting this requirement is very small (perhaps zero).

Edited by dacppdx
  • Like 1

Share this post


Link to post
Share on other sites

4 hours ago, Simon Hauser said:

How cheap could Russia produce to compete with growing US LNG exports?

-Gazprom needs price around 4 $ per mmbtu  in Europe to be  profitable. Today in Europe are close to 8 $. US LNG long term imho need about 8 to 9 $ per mbbtu.

Share this post


Link to post
Share on other sites