Portugal to receive first European LNG cargo from US

Source: Heren

2016/04/20

The Portuguese port of Sines will receive the first European delivery of US LNG from Cheniere’s Sabine Pass plant on 26 April, according to market sources and ICIS LNG Edge.

The 174,000 cubic metre (cbm) Creole Spirit, chartered by Cheniere, was the sixth cargo to load from the recently-started Sabine Pass plant with two previous deliveries into Brazil, one each into India and Argentina and the 160,000cbm Energy Atlantic recently passing round the south of Africa.

Portuguese incumbent Galp is the buyer of the cargo, a trader said, although this was not confirmed at source. Galp has a terminal use agreement at the Sines terminal. It was not clear if the cargo was sold on a spot or short-term basis.

Europe is expected to receive a large portion of US LNG given the region’s relative proximity to the Gulf coast, where the bulk of supply will be produced. US production will ramp up steadily out to 2020.

While the bulk of US LNG will be sold on a destination-free basis, Cheniere has lined up two supply deals into Europe on a delivered basis to portfolio companies EDF and ENGIE.

The Creole Spirit is a newbuild vessel and arrived at Sabine Pass on 11 April after delivery from the shipyard earlier in the year.

Full production from the first train of Sabine Pass is expected by mid-May.

Cheniere Marketing is marketing the first commissioning cargoes from the plant with the first long-term contract for train 1 to kick in for BG Group – now part of Anglo Dutch Shell – later in the year. ed.cox@icis.com