The amount of natural gas flowing on pipelines to US LNG export plants is at its lowest levels since August. This signals weak worldwide demand due to government lockdowns to repress the coronavirus.
As demand squeezed by lockdowns, worldwide gas prices in Europe and Asia have plunged to record lows. As LNG is used for power generation, consumption of LNG has remained stronger than gasoline demand. Demand, however, has been hit by the cash crunch hitting the global economy.
The amount of natural gas flowing to US LNG plants was on track to plunge to 4.3 bcfd. This is the lowest level in nine months. Since the end of April at the Henry Hub, US natural gas has been purchased higher than European benchmarks. It is expected to remain more expensive through September.
Due to the recent wave of cargo cancellations around the globe, analysts said US LNG feed gas has declined after hitting a record in February before most government-imposed lockdowns.
