United Kingdom could be a profitable ground for LNG exporters as the gas price difference with Asia has shrunk to its narrowest since the nuclear crisis.
Asian spot LNG prices hold about a 50 cent premium per million British thermal units to British prices, compared to a $10 premium earlier in the year, reports Reuters. Due to that fact, industry specialists think that many exporters might opt to bring their cargo to the UK due to a shorter distance.
It is also expected that Nigeria, Qatar and Trinidad and Tobago could all increase the number of cargoes they send to the UK.
Other industry sources see UK’s market as the biggest in northwest Europe with the liquidity that enables it to attract the lion’s share of LNG imports into the region.
Imports of liquefied natural gas into the UK have already risen to 3,681 million cubic meters in the third quarter, as Department of Energy & Climate Change reported.
LNG World News Staff; Image: BG Group