Europe stays dominant vacation spot for Norwegian LNG post-restart

Hammerfest resumed exports in June after 20-month outage

France, Lithuania, Netherlands greatest importers since return

European LNG costs stay at premium to Asian market

Europe continues to be the dominant marketplace for LNG provide from Norway’s Hammerfest LNG export facility following the plant’s restart in June after a 20-month outage, information from S&P World Commodity Insights confirmed Nov. 29.

The 4.3 million mt/12 months capability Hammerfest LNG facility, operated by Norway’s state-controlled Equinor, was shut in September 2020 after a hearth on the plant.

The plant resumed exports in June and all however one of many cargoes provided since have landed at ports throughout Europe as European hub costs proceed to commerce at a premium to different markets.

Platts, a part of S&P World Commodity Insights, assessed the Dutch TTF hub value for January supply at $39/MMBtu on Nov. 28 in contrast with the benchmark JKM evaluation for January supply to northeast Asia of $31.03/MMBtu.

For the reason that restart of the Hammerfest LNG plant — the one large-scale LNG export facility in Europe — a complete of 33 cargoes have been shipped, in keeping with S&P World information.

Just one was delivered exterior of Europe, with a cargo provided to Argentina in July.

Within the years earlier than the fireplace, cargoes would commonly be shipped to non-European markets together with Argentina, Brazil, China, India, and Japan, amongst others.

The most important marketplace for Norwegian LNG since June has been France, with a complete of 11 cargoes provided to its LNG import terminals at Dunkirk, Montoir and Fos Cavaou.

Eight cargoes have been delivered to Lithuania and 6 to the Netherlands, adopted by Belgium and the UK (two cargoes), and one every to Greece, Italy, and Spain.

Lithuania imports

Lithuania specifically was a key purchaser of LNG from Norway earlier than the fireplace — state firm Ignitis has a ten-year provide take care of Equinor agreed in 2014.

On account of the outage, Lithuania needed to make different preparations for LNG deliveries, with the overwhelming majority of its cargoes delivered from the US.

Deliveries from the US into the Klaipeda terminal in Lithuania have additionally continued regardless of Norway resuming its exports and Lithuania taking six Norwegian cargoes.

In response to S&P World information, eight cargoes have been provided to Lithuania from the US terminals of Sabine Go, Cameron, Corpus Christi, and Calcasieu Go within the interval June-November 2022.

Poland, nonetheless, has not resumed LNG imports from Norway regardless of being an everyday purchaser earlier than the fireplace, the info confirmed.

As a substitute, it has largely relied on spot LNG imports from the US and deliveries from Qatar beneath its long-term contract.