High Costs, Differentials Sink Spanish Reloads

摘要

The once-booming Spanish LNG re-export market now looks a shadow of its former self. Hit by narrowing price differentials between the Atlantic and Pacific Basins, and more competitive pricing at terminals in Northwest Europe, just two reloads occurred in the first half of 2016, according to Spanish gas grid operator Enagas, versus 14 in the same period of 2015. The two were sent from the Enagas-operated Barcelona LNG terminal and from Mugardos LNG, which is owned by a consortium including Gas Natural Fenosa and Spain's largest power utility, Endesa. By comparison, five terminals — Barcelona LNG, Huelva, Bilbao, Sagunto and Mugardos — were involved in reloads between January and June last year.