LNG plants in the US are trying to restore exports: in Finland, gas for $ 666

Frosts in Europe and the USA have stirred up gas prices. The supply of American LNG has fallen for several days, but they are trying to recover.

American LNG plants, which have become the main suppliers of liquefied natural gas to Europe since last year, are trying to restore production after the Arctic storm and frost. If until January 25, gas supplies to LNG terminals exceeded 500 million cubic meters per day, then in the next two days they fell to almost 300 million cubic meters. However, as RonhEnergy data shows, the situation is improving.

So, on January 27, gas supplies to LNG plants increased to 461 million cubic meters, and on January 28 — to 484 million cubic meters per day.

According to Wood Mackenzie, gas production in the United States on Wednesday, January 28, was still 10% lower than usual - by about 340 million cubic meters per day. The main reduction fell on The Permian Basin in Texas and Haynesville in Louisiana. LNG plants are located there, on the shores of the Gulf of Mexico.

According to RonhEnergy, LNG production was reduced by all plants.

Obviously, they are restoring production, as well as gas production is recovering. Because of frosts, she stopped because of frozen wells. Now frosty weather is recorded, for example, in Texas only at night.

Supplies to LNG plants began to recover, despite the fact that yesterday the wholesale price of gas on the Henry Hub exchange reached $ 264 per thousand cubic meters. And in some regions it even jumped up to $ 3.5 thousand. Which has already become the reason for LNG imports to the USA itself. According to Reuters, BP and Shell have delivered from their project in Trinidad and Tobago at least four parties. Two of them are for the Elba and CovePoint export terminals.

However, today the quotes have dropped by half and during the trading day they are already at the pre-storm level of $ 136.

The situation with gas in the USA, which due to frosts are forced to consume more on the domestic market, directly worries Europe. LNG from the other side of the Atlantic has become the main source of liquefied gas for EU countries. And supply disruptions have become another headache.

The cold weather in Europe is already forcing the region to actively withdraw gas from storage facilities and their filling level dropped to 43% at the end of January. A year ago, there was more gas in UGS by 13 billion cubic meters and this also affects prices. In Germany, they have been above $ 500 for a week, and in Finland yesterday they amounted to $ 666. The Baltic states are also getting closer to their neighbors. In Lithuania and Latvia, wholesale gas prices reached $623, according to EEX.

How the situation will develop further is still unknown. It is known that new Arctic frosts are already entering Europe, which are called the "Beast from the East," and they will last until the middle of next week.