Firm U.S. natgas prices seen boosting LNG imports

By Joe Silha

NEW YORK, May 8 (Reuters) - A 25-percent run-up in U.S. natural gas prices since mid-March has made the United States a more attractive destination for liquefied natural gas imports, according to a Houston-based consulting firm.

"For the first time in many months, the U.S. East Coast has emerged as a superior netback from Trinidad over most European markets. U.S. imports should experience a slow, steady increase through summer," Waterborne Energy said in its latest report.

Waterborne Energy, a consulting firm that monitors the global flow of liquefied gases, estimates that U.S. imports of LNG should climb to about 43 billion cubic feet in June from about 36 bcf in both April and May. But that would still be about half of last June's total when the United States took in about 88 bcf.

U.S. East Coast gas prices have climbed nearly 25 percent since mid-March to about $12 per mmBtu.

While gas prices in Britain and Spain are close to that level, it takes twice as long to deliver LNG from Trinidad, a major spot supplier, to Europe and costs about 30 cents more, making the trip to the United States more profitable.

Waterborne expects European imports of LNG to show signs of slowing later this month, while Far East demand should also taper off as heating needs slow in spring.

The company expects most of the increase in U.S. LNG imports to discharge at the Cove Point terminal in Maryland.

BP continues to be the main supplier of spot LNG from the Atlantic basin, offering between two and five cargoes per month.