Free Trial

Asian Buyers Taking Minimum LNG Cargo Volumes Amid Muted Demand

LNG

Northeast Asia spot LNG price volatility has been driven by potential disruption to Russian supplies according to Bloomberg although there has been no impact of actual output following the unrest at the weekend.

  • Buyers are nominating to receive minimum cargo volumes amid muted demand in Northeast Asia according to Bloomberg sources. The weak demand could result in extra supply and more spot tenders this summer.
  • Front month JKM has declined from a high of around 12.9$/mmbtu to 11.8$/mmbtu as European natural gas prices have eased back following recent tight supply concerns although is still supported by warm weather.
  • European LNG imports are lower this month led by a slump in supply to the UK. Total European sendout is down about 13% in June compared to May.
  • The JKM-TTF spread is holding around +1.4$/mmbtu today and the US netback to Europe for August was estimated at 6.67$/mmbtu and to Asia at 7.67$/mmbtu according to Bloomberg before the TTF open today.
    • TTF JUL 23 up 2.5% at 32.79€/MWh
    • NBP JUL 23 up 1.6% at 81.03p/th
    • JKM Jul 23 down -0.4% at 11.79$/mmbtu
    • JKM-TTF Jul 23 down -0.1$/mmbtu at 1.36$/mmbtu
    • US Natgas JUL 23 down -0.7% at 2.77$/mmbtu

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.