Last June, MDN quasi-predicted that natural gas prices may spike during the 2016-2017 winter season in New England, due to a coming shortage of LNG from Tinidad (see Is New England Heading for Huge NatGas Price Spike this Winter?). With a warmer than normal winter, and with newfound natural gas supplies making their way to New England, prices did not spike. However, New England continues to pay prices 3-4 times higher than the rest of the country for their natgas–due to lack of supply. That hasn’t (and won’t) change, until more supplies make it to New England–either by pipeline or ship. Opponents of new pipelines to New England have included LNG importers in the region. Specifically, GDF Suez imports Trinidad gas at the Everett, MA LNG import terminal, near Boston (see New England Importer Received 59% of All LNG Ship Imports 1H15). LNG imports are one of the primary sources of natgas for New England. Antis holler and scream, “Forget the pipelines. If you must use gas, use LNG. There’s more than enough LNG to supply New England.” In a macro sense that may be true–the world is awash in LNG. But arranging shipments and sources for it takes months, even years. Right now most of the LNG GDF Suez imports comes from Trinidad. As we pointed out in our article last year, Trinidad’s natural gas sources are drying up. The country is exporting less and less. We spotted yet another article about how Trinidad’s natural gas exports are rapidly declining. Sooner or later Trinidad’s falling exports will affect GDF Suez’s imports of LNG to New England. Once again, like that famous New Englander Paul Revere, we’re issuing a warning that New England needs new sources of natgas (via pipelines), and they need it sooner rather than later…
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