Barclays Sees 'Bridge' Across the Atlantic in LNG Markets, as U.S. and U.K. LNG Prices Seemingly Converge

摘要

In 2009, liquefied natural gas (LNG) prices across the pond created a virtual "bridge" between the European and U.S. LNG markets, explained Barclays Capital, in a recent report, Natural Gas Weekly Kaleidoscope: A Bridge Over the Atlantic. "For the natural gas markets, a bridge over this vast ocean is beginning to crystallize, with increased spot LNG trade and thus closer linkages between the two continents' benchmark prices," Barclays' report stated. "The two [LNG markets] long danced apart, each to a rhythm dictated by their own regional supply/demand fundamentals. This year, however, their disparate beats have synced." The link between prices on the two sides of the Atlantic could persist beyond 2010, to the extent that excess LNG continues to be pushed into the Atlantic Basin and the U.S. market remains oversupplied, Barclays predicted.