Portugal prepares for record sixth LNG cargo in February

Portugal is on track to receive a record six LNG cargoes in February, which could bring in over 800,000 cubic metres (cbm) of LNG, according to recent and anticipated arrivals published by LNG Edge.

Portugal has never previously imported more than four cargoes in a single calendar month, and not least in the shortest month of the year.

The terminal at Sines has already received four cargoes this month – equalling a high only ever seen before in March and August 2013, and in March 2015. Two more vessels are forecast to arrive before the end of the month.

The rush for LNG in Portugal is similar to nearby Spain and southern France, where hub prices spiked to in excess of €42/MWh ($13/MMBtu) on spot products during January, on soaring demand and reduced supply.

This brought spot prices to a premium to global LNG importers, making southern Europe more attractive, although pricing and demand has since fallen.

On top of contractual volumes from Nigeria brought in by Portuguese incumbent Galp, LNG Edge shows that two spot cargoes have already been delivered, with a third set to arrive by the end of the month.

The Sines LNG terminal’s throughput hit maximum on 12 January this year as demand spiked, according to operator REN.

Record volumes

In terms of volumes, the approximate 543,000cbm imported to date on the Port Harcourt II, LNG River Niger, Golar Kelvin and Clean Ocean already represents the highest monthly import figure since at least 2012, when LNG Edge figures start.

Based on monthly figures from Portuguese state energy directorate DGEG, which go back to January 2010, this February has probably already slightly exceeded the previous record imports of 3.16 billion cubic metres of natural gas, which equates to around 530,000cbm of LNG.

Even if one of the planned vessels fails to arrive this month, previous highs would still be beaten comfortably.

The 146,000cbm LNG Oyo is due in from Nigeria next week, with the 166,000cbm Meridian Spirit at the end of the month.

The geographical makeup of the volumes Portugal is importing is also evolving, with four of the six expected from Nigeria and two from the US Sabine Pass. These two will only be the second and third US cargoes ever to be imported into Portugal – the first was in April 2016.

Galp has three LNG contracts with Nigeria LNG (NLNG) for a total of 3.4bcm, or around 2.6m tonnes/year.

On top of these contractual volumes, smaller companies such as electricity incumbent EDP and Swiss energy company Axpo occasionally bring in spot volumes.

Other companies such as Spanish utility Endesa have the flexibility to bring in cargoes to several Iberian terminals, including Sines, and have secured Qatari and Algerian deliveries in recent months, LNG Edge shows. robert.songer@icis.com