Iberia drives European LNG sendout up in November
London, 1 December (Argus) — Spain and Portugal regasified more LNG in November than a year earlier, but northwest Europe's sendout remained weak.
Aggregate European sendout rose to 1.39 TWh/d in November from 1.22 TWh/d a year earlier.
Spanish PVB prices have climbed enough to compete with northeast Asia for Atlantic basin LNG cargoes. This encouraged strong deliveries to Iberia and brisk sendout last month.
Low hydroelectric generation has boosted Spanish power sector gas demand this winter. Spain will need higher LNG imports than in recent winters even if pipeline receipts are at full capacity, barring extremely heavy rainfall cutting gas-fired generation.
Spanish industrial gas demand also rose last month, although the increase in aggregate consumption was mostly driven by the power sector.
But northwest Europe's LNG sendout was broadly in line with a year earlier, with only UK regasification increasingly slightly. Northeast Asian and Middle East LNG prices opened a wide premium to northwest European hubs, drawing supply away from the region.
Northwest Europe's sendout remains weak GWh/d
European LNG sendout ticks higher GWh/d
PVB follows ANEA up in winter €/MWh