Winter storm in U.S. could tighten LNG market

A winter storm that gripped the U.S. could disrupt global liquefied natural gas (LNG) supplies, what may lead to a subsequent market tightening.

The Texas power system managed to avoid major disruptions during the storm. However, shipping companies are warning that navigation could be disrupted on the waterways of Sabine Pass, the largest LNG export terminal. 

Moran Shipping reports that workers have suspended mooring at Corpus Christi port because of freezing weather. This could affect ship traffic to the Corpus Christi LNG export terminal. 

The U.S. has established record LNG shipments to Europe, with about 70% of all U.S. LNG exports going to Europe in recent months.

According to a statement by commodities giant Trafigura, due to a drop in Russian pipeline gas supplies, Europe will need significant LNG volumes next year.

The exchange company reported that Europe could avoid winter blackouts by stockpiling gas and reducing supply demand. However, after Russia delivers less gas to Europe, the EU will have to import huge amounts of LNG in 2023.