By Scott DiSavino
Jan 24 (Reuters) - U.S. liquefied natural gas (LNG)exporters have shifted their focus to Southern Europe from Asiaas cold weather and problems with Algerian gas supply havedriven Europe's gas prices higher.
Gas prices in Europe are at their highest premiums to U.S.gas prices for three years. Several cargoes have already madetheir way to Europe, and analysts expect more to come.
Day-ahead prices at southern France's Trading Region South(TRS) gas hub jumped to a near five-year high last weekof 45 euros per megawatt hour, or over $14 per million Britishthermal units (mmBtu), making TRS one of the world's premiummarkets.
Next-day gas prices at the Henry Hub
Consumers cranked up their heaters as cold weather hit theregion, pushing up demand for gas. As demand has risen, supplyfrom Algeria has been reduced due to problems at Sonatrach'sSkikda LNG export terminal.
The ongoing shutdown of some French nuclear plants as aconsequence of the discovery of forged manufacturing documentsfor some parts used in those plants has also fired up demand forpower from the region's gas-fired plants higher than normal.
Spain, Greece and Turkey would be other possibledestinations for the LNG cargoes, said Madeline Jowdy, seniordirector global gas and LNG at PIRA in New York.
The flow would likely slow in March, as winter comes to anend in Europe, said Ted Michael, LNG analyst, natural gas, atenergy data provider Genscape.
Over the past month, one vessel has delivered U.S. gas toSpain and one to Turkey. Two more vessels transporting U.S. gaswere sailing in the Mediterranean and another was moving acrossthe Atlantic, according to Reuters shipping data.
That is very different from December when more than half ofthe vessels departing Cheniere Energy Inc's Sabine Passterminal in Louisiana turned west toward Japan, South Korea andChina. Sabine Pass is the only LNG export terminal in the lower48 U.S. states.
In December, spot gas prices in Asia
Asia gas prices have since collapsed by about 18 percent duein part to the return to service of the first liquefaction trainat Gorgon.
Sabine Pass should have more gas to sell than in Decembersince the third liquefaction train at the facility startedprocessing gas during its commissioning phase.
Over the past two weeks, Sabine Pass has processed about 2.0billion cubic feet per day (bcfd) versus an average of 1.4 bcfdin December, according to Thomson Reuters data.
Since the first cargo left Sabine Pass in February 2016,about 65 vessels have carried off about 210 bcf of gas from thefacility, worth about $540 million based on average Henry Hubprices in 2016. The United States consumes about 75 bcfd of gason average.
Royal Dutch Shell Plc's BG Group has the contractfor part of the capacity of the first and second 0.65-bcfdliquefaction trains at Sabine Pass. Gas Natural Fenosa has a contract for part of the second train's capacity. (Reporting by Scott DiSavino; Editing by Simon Webb and ChizuNomiyama)
