US LNG breaks into Caricom market; Barbados now importing LNG from United States

Monday, June 20, 2016 - 20:00

Trinidad and Tobago's close neighbour, Barbados has become the first Caribbean country to begin importing Liquified Natural Gas from the United States.

This is according to a report by the US Department of Energy's Office of Fossil Energy, which also shows that the prices paid by Barbados are in some cases more than double the amount of which this country is exporting LNG.

The report shows that six shipments of domestically-produced US LNG left the port of Hialeah, Florida between February 5th and April 29th, 2016, bound for Barbados.

The shipments totalled 7.4 million cubic feet of LNG that fetched prices as high as US$15.78/mmbtu, with the lowest price being US$10/mmbtu.

In comparison, the highest price Trinidad and Tobago has fetched for LNG exports to the United States this year, was US$6.70/mmbtu.

All annual reports dating from 2015 go back, have shown no exports by the United States to any other country in the Caribbean, making this year the first incursion by the United States, into T&T's traditional Caricom market.

T&T now the only LNG supplier to US

The DOE report which tracks LNG import and export data for the US for the first four months of 2016, also shows that Trinidad and Tobago is now the only country in the world that exports LNG to the US.

A total of 34.8 billion cubic feet (bcf) was exported by this country between January and April this year.

Other competing nations, including Egypt, Nigeria, Norway, Qatar and Yemen, have not exported any LNG to the US this year.

The report shows that Trinidad and Tobago exported 12 billion cubic feet of LNG in January.

However, that figure dropped to 9.6 bcf in February, 8.5 bcf in March and 4.7 bcf in April.

Overall, this still represents an increase of 1 billion cubic feet over the corresponding period for 2015, during which 33.8 bcf was exported.

The report shows two short-term shipments from this country in January and February amounting to 2 bcf, that netted US$6.70/mmbtu per shipment.

A total of 15 other shipments over the period netted prices ranging from US$5.83/mmbtu to US$1.45/mmbtu.

Trinidad and Tobago exported a further 15 billion cubic feet of LNG to US territory, Puerto Rico during the same period.

The most valuable of those shipments netted US$6.96/mmbtu.

- CNC3 Digital