January 20, 2023


Start Up Of Spanish El Musel LNG Terminal Facing Delays

The operational start of Spain’s seventh LNG terminal, El Musel, is seemingly facing delays, and it is unlikely to come on line in January as previously planned.

The terminal, located in the port of Gijon on the northern Spanish coast, which has been in hibernation since 2012, was expected to begin operation as a storage-only facility for cargo reloads this month.

According to Spanish LNG terminal and gas grid operator Enagas, El Musel will be able to provide 8 billion cubic meters per year of LNG, or about 5.1 million tons, to the market, with other European countries, primarily in the north of the continent, to be the main destinations of the reloaded cargoes from the terminal.

The facility has two LNG storage tanks, each with 150,000 cubic meters of capacity, which means it can store roughly two cargoes worth of LNG at any given time.

Its first tank was reportedly set to start operation in January, with the second one following in the upcoming months, however, the first tank is now unlikely to come onstream during the remainder of this month.

No Interest?

The delay could be driven by the lack of interest from market participants to use the terminal only for reloads.

A Spanish market source noted that market players have shown little interest “in a logistic facility,” suggesting that is easier to simply keep the cargo floating on board of a vessel.

A Spanish trade source, however, was more optimistic regarding the terminal’s potential.

“It depends on the market situation. Last autumn, the terminal would have had lots of value, as the shipping [market] was really tight and was not possible to do more floating,” the trade source told Energy Intelligence.

Indeed, additional LNG storage availability would have provided relief for Spain's six operational terminals during October and November, when saturated LNG terminal tanks forced Enagas to implement temporary restrictions on cargo unloadings in order to maintain safe operations.
Daniel Stemler, Madrid

Germany Receives Third FSRU, HEH Starts Jetty Works

Germany’s LNG import ambitions advanced this week with the arrival of the country’s third floating storage regasification unit (FSRU) at the port of Brunsbuttel, and the start of construction works on a new jetty at the Stade port.

The Hoegh Gannet FSRU moored at the Brunsbuttel port near Hamburg on Friday morning, RWE confirmed. The FSRU set off from the Murgados LNG terminal in Spain last week and is set to receive its first LNG cargo at the end of January. The Abu Dhabi National Oil Company (ADNOC) will supply the first cargo onboard the Ish LNG carrier.

The FSRU will now undergo commissioning and trial operations and is expected to feed first gas into the German grid in early February, according to RWE.

Jetty Works

Another German government-backed LNG terminal project moved ahead this week as construction works on a new jetty started at the Stade port.

Niedersachsen Ports, which constructed the jetty for Uniper’s Wilhelmshaven LNG terminal, will undertake the works.

The jetty will be ready to host the Transgas Force FSRU by the end of 2023, Hanseatic Energy Hub (HEH) said.

The Transgas Force has a regasification capacity of up to 7.5 billion cubic meters per year and will operate at Stade until the end of 2026. HEH is looking to launch a 9.9 million ton/yr (13.5 Bcm/yr) land-based LNG terminal at Stade at the start of 2027 and so far concluded two long-term capacity bookings.

Germany on the LNG Map

Germany, having started 2022 with no LNG import infrastructure whatsoever, is now seeing LNG imports begin to ramp up (see graph).

A total of six floating LNG import terminals — with combined LNG import capacity of about 22 million tons per year — are expected to be deployed on Germany's shoreline this year as the country races to undo its decades-long dependence on Russian piped gas in the wake of the latter's invasion of neighbor Ukraine.

Created with Highcharts 9.0.0(tons)GERMAN LNG IMPORTS EMERGEDec 12'22Dec 19'22Dec 26'22Jan 2'23Jan 9'23Jan 16'22025,00050,00075,000100,000125,000Source: Kpler

Eric Thorp, London

Data Snapshot

LNG Netbacks at Key Receiving Terminals

LNG Exporter Netbacks Between Key Receiving Ports
($/MMBtu)AlgeriaAustralia WestAustralia EastMalaysiaNigeriaNorwayOmanPeruQatarRussiaTrinidadUS GulfUS East Coast
Dahej, India17.1217.5217.1817.5116.8016.6517.9416.3317.8617.2116.5116.2516.58
Sodegaura, Japan17.8619.1319.1519.2217.8314.6518.7916.8318.6719.5417.1516.3417.99
Zeebrugge, Belgium22.7521.2020.8421.2722.2722.6121.9220.8121.7920.8422.3921.5122.48
Huelva, Spain17.8616.4016.0616.4617.3717.2017.0715.9516.9516.0617.4316.5317.45
Isle of Grain, UK20.6219.0918.7319.1520.1720.4719.9118.7119.6818.7420.2719.4020.35
Everett, US2.340.931.250.992.061.930.011.661.470.612.53----
Created with Highcharts 9.0.0($/MMBtu)QATAR TO NORTHEAST ASIANetbackNetback15. Aug29. Aug12. Sep26. Sep10. Oct24. Oct7. Nov21. Nov5. Dec19. Dec2. Jan16. Jan10203040506070Energy Intelligence

LNG Market Indicators

Spot LNG Pricing
Latest WGIDailyDaily Chg.Chg. From Latest WGI
NE Asia20.0020.260.220.26
SW Europe14.1518.502.114.35
Futures Pricing
($/MMBtu)Chg.LatestPreviousWeek Ago
Henry Hub, US (futures)-
NBP, UK (futures)+2.0320.9318.9020.14
European Spot Pricing
Chg.LatestPreviousWeek Ago
Dutch TTF2.2721.7619.4920.14
Zeebrugge (Belgium)--------
German NCG0.8917.6016.7117.59
NBP (UK)2.1121.4419.3320.82
US Markets
US Spot Prices
Sabine Pass, Louisiana0.193.122.933.43
Corpus Christi, Texas----2.682.90
Cove Point, Maryland0.313.192.883.67
Elba Island, Georgia------3.05
Nymex Henry Hub Futures
Near Month-
Second Mth-
Third Mth-
Created with Highcharts 9.0.0($/MMBtu)GLOBAL GAS PRICINGUS NymexDutch TTFNE AsiaFeb '22Mar '22Apr '22May '22Jun '22Jul '22Aug '22Sep '22Oct '22Nov '22Dec '22Jan '230255075100125Energy Intelligence