Global LNG demand has picked up, cancellations for U.S. cargoes have subsided, at least for now, and there’s upside to U.S. cargo activity once tropical storm-related disruptions are resolved. But positive netbacks year-round are no longer a foregone conclusion for U.S. offtakers. As global oversupply conditions persist, at least on a seasonal basis, and supply competition intensifies, the economic decision to lift U.S. cargoes will be much more nuanced than it was in previous years. What do the economics for cargoes this winter and beyond look like? Today, we put the LNG economics model to work to understand what’s in store for U.S. LNG in the coming months.
Sultans of Swing, Part 2 – LNG Shipping Costs, Netbacks, and the Decision to Cancel Cargoes
