Asia LNG Supply Tighter After Price Surge Draws Cargoes to Europe

LNG suppliers in Asia are seeking spot cargoes to fulfill their contractual obligations to customers according to Bloomberg after the surge in European prices earlier this week pulled supply away from the region.

• Supply in Asia could be tighter for the next few months driven by high Europe prices attracting spot cargoes according to Bloomberg sources.
• North Asia LNG spot prices have rallied more than 50% in the past two weeks from the lowest level since 2021 but spot demand from North Asia’s LNG buyers is still weak.
• Price-sensitive buyers in China have halted spot purchases due to the increase in prices. Asian demand remains muted due to high inventories and weaker industrial activity. Increasing cooling demand from hot weather in China is covered by increased coal burn at power plants.
  • TTF JUL 23 down -9.6% at 37.21€/MWh
  • NBP JUL 23 down -10.1% at 92.61p/th
  • JKM Jul 23 up 2% at 9.58$/mmbtu
  • JKM-TTF Jul 23 up 0.8$/mmbtu at -2.38$/mmbtu
  • US Natgas JUL 23 up 1.5% at 2.57$/mmbtu