Below normal temperatures spur strong demand Lower shipping costs benefit market fundamentals Strong buying in end-user markets and lower shipping costs helped lift US Gulf Coast FOB export cargo values to the highest level on record to finish the week of Dec. 7-14.
Feedgas deliveries to the six major liquefaction facilities in operation tracked the heavy global demand for LNG, especially in Europe. In the coming weeks, a seventh US LNG export terminal, Venture Global LNG’s Calcasieu Pass in Louisiana, was expected to start up. The trends in fundamentals were expected to continue in the near-term, as winter temperatures drop in destination markets and boost demand for the super-chilled power plant and home heating fuel. That could be an even more bullish sign for FOB cargoes. “With the shrinking spreads, there will be a big flow […]