EnLiquefied natural gas (LNG) imports by the world’s three largest consumers – China, Japan and South Korea – increased 20.8% on a year earlier in January, Panjiva analysis of official figures shows. That largely reflects an 18.3% increase in spot prices, but was nonetheless the first increase since December 2014 and at $6.33 billion the highest value since March 2015. The growth was led by a 33.2% jump in imports by China, Panjiva data shows.
Source: Panjiva
Half of the growth in Chinese imports in absolute terms was due to increased shipments from Malaysia, a 6.8-fold rise on a year earlier. That may not prove to be a sustainable source given Petronas recently signed a significant supply deal with Hokkaido Electric, Reuters reports. Meanwhile imports from Australia climbed 28.8% on a year earlier as flows from the Gorgon field reached full flow. There were shipments from the U.S. for the second month in a row, though these only accounted for 4.3% of the total.
Source: Panjiva
U.S. exports reached $330 million in January, a new high and 48% higher than that achieved in December. The main target markets were Japan, Mexico and Spain. It is worth noting no new exports were despatched to China in the month, so Chinese buyers including CNOOC and Petrochina may require other suppliers in March.
Globally U.S. exports are still relatively minor despite their rapid growth – they were equivalent to just 11.9% of the value of Australia’s exports. Further growth should be possible in the near term after Cheniere Energy obtained FERC approval for its third train at Sabine Pass. Longer term additional legislation is needed, but seems likely given the Trump administration’s push for energy independence and exports.
Source: Panjiva
