Earlier quoted context omitted.
Are you saying that by holding onto so much gas that there’s less in active circulation therefore it leads price increases?
He is saying having less available slack increases volatility: It led to a recent price drop because when gas usage was lower than expected there was nowhere to store the excess supply as would usually be done. It will lead to a price rise if usage is higher than expected because they won’t want to risk depleting stores too much.
So a lot of design work for oil and gas production facilities is around minimising shutdowns. A large part of this is working out storage capacities, and for LNG, the shipping rates. If the LNG carriers (tankers) are unable to offload at a receiving terminal there is a higher chance the LNG loading terminal will reach tank tops. Tank tops at the loading terminal means the upstream production facility will need to turn down or stop all production. Given the high costs (capital and production opportunity) that incurs for the production facility, it might be better to take a short term loss for a few cargoes to prevent the tank tops at the loading terminal and thus a production shutdown.