Some energy firms send LNG to the US for storage as the European stockpiles filled fast.
On Saturday, a Trinidad cargo arrived at Dominion Energy Inc’s Cove Point LNG plant in Maryland to store as stockpiles in Europe filled fast. Another ship from Nigeria is also expected to drop its LNG cargo in the country.
As US liquefied natural gas (LNG) prices went higher than the prices in Europe and Asia due to the coronavirus-related lockdowns, many buyers of US LNG canceled orders for June and July.
Some analysts also opined that storing LNG in the US at the moment is a rational choice due to the higher prices.
However, since the start of June, European gas prices have jumped by around 60% after slumping to record lown in late May. Therefore, European gas is again more expensive than in the US.
Going forward, energy traders expected that this summer, LNG buyers would cancel more US cargoes. The US LNG exports plunged to the lowest in 13 months this month, but as the European gas prices spiked again, the gains are not as much as expected.
