Report examines New England LNG imports
The Energy Information Administration (EIA) maintains winter imports of liquefied natural gas (LNG) at New England terminals played an important role in moderating regional natural gas prices.
The volumes increased during times of high spot natural gas prices at the Algonquin Citygate, a widely referenced trading hub and benchmark for natural gas prices in New England, per the EIA’s analysis, effectively limiting further increases in spot prices.
The breakdown showed from November 2017 through March 2018, LNG imports into New England averaged 0.14 billion cubic feet per day (Bcf/d) and peaked at 0.88 Bcf/d on Jan. 6 during the bomb cyclone event. From November 2018 through March 2019, LNG imports into New England averaged 0.24 Bcf/d and peaked at 1.48 Bcf/d on Feb. 1.
Other contributing factors moderating spot natural gas prices in New England during winter 2018–2019 beyond increased LNG imports include cold weather events last winter, which were more episodic compared with the sustained cold weather in the polar vortex event in January 2014 and the bomb cyclone event of January 2018.
Because New England does not have underground natural gas storage infrastructure and is not a natural gas-producing region, officials said LNG imports to the region can be a key marginal source of natural gas supply during times of high natural gas demand in the winter.
