This week sees the UK set to receive the first shipment of liquified natural gas from the United States. The LNG carrier is scheduled to arrive on Saturday, carrying enough gas to cover approximately half of the UK’s average daily summer demand.
The delivery will add more diversity to the source of gas supply to the UK. The news of the shipment comes amid rising concerns about the future of UK gas pricing, with the announcement last month that Centrica will be closing the Rough Storage facility once reserves have been depleted.
The UK is also due a shipment later in the month from Nigeria, and combined with Saturday’s first shipment from US Gulf production, it could certainly help meet the high UK export demand.
Whilst buying in liquified gas over the summer will help the UK, it is likely that given the current price signals, Britain may not be a likely buyer of overseas LNG over the winter, as premium markets in Asia, who have no access to pipeline gas, will probably be the main consumer.
If you would like to discuss how this LNG delivery may impact on you, please give your relationship manager a call.