Britain’s liquefied natural gas (LNG) imports for March are at their highest levels in roughly 29 months, helping British wholesale gas prices slide to a more-than 18-month low.
Britain is set to receive 14 cargoes in March, with six tankers scheduled for this week alone, Reuters reported.
The country is on track to import 1.18 million tonnes of LNG this month, amounting to 1.63 billion cubic meters (57.56 billion cubic feet) of gas, or 52 million cubic meters (1.84 billion cubic feet) a day, Kallanish Energy calculates.
The influx of LNG follows a large boost in supplies in the past half a year, primarily from the U.S. and Russia, and less demand in Asia, sending more product to Europe.
This has weighed heavily on wholesale gas prices in Britain which have dropped by 50% since a September peak of 80 pence ($1.06) per therm, Reuters reported. On Monday, day-ahead wholesale gas prices were 37.80 pence ($0.50) per therm.
Consistently high send-out rates of re-gasified gas into the pipeline system over the past six months has also increased the share of LNG in total gas supply to almost 30% in March, from rates as low as 2% in December 2017.
Russian LNG from the Arctic Yamal facility, which opened in December 2017, has also impacted the European energy landscape.
Qatar, Britain’s dominant historical supplier, remains the top LNG producer in the world, but will have to expand production capacity in coming years to keep the top spot.
The proliferation in LNG supply, as well as more flexible supply contracts and pricing mechanisms, has diluted Qatar’s share of British LNG supplies to 34% year-to-date, from 39% in 2018, and 87% in 2017, Reuters reported.
This post appeared first on Kallanish Energy News.