Tuesday, 23 November 2010

U.S.-to-U.K. LNG Shipment Last Week May Mark New Trade Link, JPMorgan Says

A delivery of liquefied natural gas to the U.K. from the U.S. last week was
the first such consignment since 1959 and may mark the start of a new trade
link between the markets, JPMorgan Cazenove said. The LNG tanker Maersk Meridian delivered an initial shipment of the fuel to
the Isle of Grain terminal, east of London, from the Sabine Pass terminal in
the U.S., National Grid Plc said Nov. 19. The fuel had been reloaded at the
U.S. terminal, JPMorgan Cazenove analyst Fred Lucas said in a report dated
yesterday. "Cargo reloading will create a physical link, albeit presently very thin,
between the U.K. and U.S. gas markets," which were previously "isolated," he
said. "If reloading volumes rise materially, this could enforce a tighter
price spread between the U.K. and U.S. gas markets." http://www.bloomberg.com/news/2010-11-23/u-s-to-u-k-lng-shipment-last-week-m

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