Nigerian LNG was exported to a wider range of destinations last year, Eclipse data showed, with less material being sent to East Asia following a steep decline in JKM prices, partly as result of new liquefaction capacity in Asia Pacific.
LNG exports fell 2.3% to 42.49 million cu meters, with exports to East Asia accounting for 34% of the total, down from 48% in 2014 as the Platts JKM spot marker fell to $5.79/MMBtu at the end of 2015 from $18.98/MMBtu in January 2014. Eclipse is an analytics unit of Platts.
On a quarterly basis, the drop in JKM prices yielded a 0.81 correlation to Nigerian exports to East Asian buyers.
Meanwhile, exports to the Middle East last year rose 203%, with European imports up 22% to 8.22 million cu m.
NEW CAPACITY
New liquefaction capacity in the Pacific added further fundamental pressure to Nigerian export levels, with East Asian imports from other Pacific producers accounting for 52.0% of imports last year, up from 46.4% in 2014.
Since the beginning of 2014, total liquefaction capacity in the Asia Pacific region rose 33.6%, with 34.80 million mt/year of new capacity coming online.
Australian projects added 24.80 million mt/year of this capacity, while new facilities in Papua New Guinea and Indonesia provided 6.9 million mt/year and 2.1 million mt/year respectfully.
In contrast, Atlantic liquefaction capacity remained relatively stable, with only the 4.70 million mt/year Arzew LNG facility in Algeria coming online.
However, the opening of the 22.50 million mt/year Sabine Pass liquefaction facility in the US will increase Atlantic capacity by 44.7%, with new facilities also opening in Australia.
Several market sources said additional capacity in the US will put pressure on European prices and Nigerian cargo sales, citing low Henry Hub gas prices and reasonable freight rates to deliver US cargoes to other Atlantic destinations.
--Henry Van, henry.van@platts.com
--Edited by Dan Lalor, daniel.lalor@platts.com
LNG exports fell 2.3% to 42.49 million cu meters, with exports to East Asia accounting for 34% of the total, down from 48% in 2014 as the Platts JKM spot marker fell to $5.79/MMBtu at the end of 2015 from $18.98/MMBtu in January 2014. Eclipse is an analytics unit of Platts.
On a quarterly basis, the drop in JKM prices yielded a 0.81 correlation to Nigerian exports to East Asian buyers.
Meanwhile, exports to the Middle East last year rose 203%, with European imports up 22% to 8.22 million cu m.
NEW CAPACITY
New liquefaction capacity in the Pacific added further fundamental pressure to Nigerian export levels, with East Asian imports from other Pacific producers accounting for 52.0% of imports last year, up from 46.4% in 2014.
Since the beginning of 2014, total liquefaction capacity in the Asia Pacific region rose 33.6%, with 34.80 million mt/year of new capacity coming online.
Australian projects added 24.80 million mt/year of this capacity, while new facilities in Papua New Guinea and Indonesia provided 6.9 million mt/year and 2.1 million mt/year respectfully.
In contrast, Atlantic liquefaction capacity remained relatively stable, with only the 4.70 million mt/year Arzew LNG facility in Algeria coming online.
However, the opening of the 22.50 million mt/year Sabine Pass liquefaction facility in the US will increase Atlantic capacity by 44.7%, with new facilities also opening in Australia.
Several market sources said additional capacity in the US will put pressure on European prices and Nigerian cargo sales, citing low Henry Hub gas prices and reasonable freight rates to deliver US cargoes to other Atlantic destinations.
--Henry Van, henry.van@platts.com
--Edited by Dan Lalor, daniel.lalor@platts.com
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