Over the weekend, Constellation Energy’s Everett liquefied natural gas (LNG) import facility in Massachusetts received a delivery of LNG from Trinidad, according to data from the London Stock Exchange Group (LSEG). The BW Boston tanker transported approximately 2.7 billion cubic feet (bcf) of natural gas in LNG form, marking its second delivery to Everett this winter, following another shipment from Trinidad in December.
Constellation Energy officials were not immediately available for comment regarding the recent LNG delivery.
In recent years, U.S. LNG imports have decreased as domestic production from shale fields increased. Global prices surged, particularly after Russia’s invasion of Ukraine, leading to a reduction in Russian gas exports to Europe. Energy traders note the challenges faced by U.S. LNG importers in competing with European utilities willing to pay around $10 per million British thermal units for gas, while the same fuel trades at approximately $3 in the U.S.
In 2023, Everett imported about 15.4 bcf of gas, a notable decrease from the five-year average (2018-2022) of 31.5 bcf, according to federal energy data. One billion cubic feet of gas can power approximately 5 million U.S. homes for a day.
Limited gas flow on pipelines in New England leads to reliance on LNG and oil for powering certain plants, especially on the coldest days when most of the region’s pipeline gas is used for heating homes and businesses. Approximately half of the power generated in New England comes from gas-fired plants.
However, the future of the Everett LNG facility is uncertain, as Constellation Energy is expected to retire its Mystic gas-fired power plant, located at Everett, in May 2024. The Mystic plant receives gas supply from Everett LNG, and the U.S. Federal Energy Regulatory Commission and the North American Electric Reliability Corp expressed concerns in November that the shutdown of Everett could impact the reliability of New England’s power grid.
While there have been discussions among New England gas companies and stakeholders about plans to keep Everett LNG in service, the situation remains fluid.
