The scheduled ramp-up of US liquefaction capacity will bring more price flexibility to the global LNG market, with the potential to sell feedgas at the Henry Hub, rather than load cargoes.
But it would take a combination of conditions for US LNG to be shut in for price reasons, including the event of an oversupplied global LNG market.
This white paper, featuring coverage from Argus European Natural Gas, takes a forward look at possible scenarios against various market fundamentals.
- Henry Hub could provide price floor for global LNG
- China drives global demand higher
- Dutch and German power sectors provide resistance
- Oil price rise reduces possibility of US LNG shut-in