LNG Shipments Diverted From Asia Drive U.K. Price Drop - Bloomberg

LNG Shipments Diverted From Asia Drive U.K. Price Drop - Bloomberg:



"Faced with slumping demand for liquefied natural gas in Asian markets, Qatar is shipping cargoes to Britain, deepening the biggest seasonal price drop for the fuel there in five years.



Qatar, the biggest producer, will send at least eight cargoes to the U.K. this month, taking the total since April to 35, six more than last year, data compiled by Bloomberg show. Prices on the U.K.’s National Balancing Point, the largest trading hub outside the U.S., have fallen 28 percent since the summer started on April 1.



The cargoes, typically big enough to meet about 75 percent of Britain’s daily gas use, are entering a market where the mildest European winter in seven years damped prices and demand, reducing the need to replenish inventories. Buyers in Asia, the largest LNG market, have covered their summer needs and spare deliveries are heading to Europe, where enough gas is traded to absorb the fuel not required elsewhere, according to Laurent Maurel, a vice president for strategy at Total SA in Paris."



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