The first two US LNG cargoes to reach northern Europe have now landed in Poland and the Netherlands, marking a historic new chapter in the US LNG export sector that began with the first Lower 48 deliveries to world markets in February last year.
The Clean Ocean and Arctic Discoverer, which both departed the Sabine Pass LNG export facility last month, arrived late Wednesday and early Thursday at Poland’s Swinoujscie port and the Dutch Gate terminal respectively, according to cFlow, Platts trade flow software.
US LNG exports began in February last year, but before Wednesday no cargoes had landed in the liquid hubs of northwest Europe or elsewhere in northern Europe, faced with competition from domestic supply and cheap imports from Norway and Russia.
PGNiG said Thursday that the volume of its cargo into Swinoujscie — a pure spot deal done between Sabine Pass operator Cheniere Energy and PGNiG in May — would be 95 million cu m of gas after regasification.
The US cargo was the 14th commercial delivery, with 12 of those cargoes deliveries from Qatargas as part of a 20-year supply contract with PGNiG. Statoil also delivered one spot cargo in June last year.
PGNiG’s long-term contract with Gazprom for up to 10.2 Bcm/year of gas is due to expire in 2022 and the Polish company wants to have alternative sources of supply to improve its bargaining position once negotiations for the renewal of the Gazprom contract open in 2019.
PGNiG officials have also said the contract may not be renewed if plans to tap Norwegian gas via the Baltic Pipe project go ahead.
However, there do not seem to be any other cargoes headed for northern Europe, so the two arrivals into Swinoujscie and Gate do not necessarily signal the start of a wave of LNG flows from Sabine Pass to the region.
Since exports of US LNG from Sabine Pass began, a number of cargoes have landed in southern Europe, with Spain taking four cargoes, Portugal three, Italy one and Malta one.
Another cargo — carried from Sabine Pass aboard the Ribera Del Duero Knutsen — is currently headed for Portugal and is due to arrive on June 13, according to cFlow.
