Asian Spot LNG Prices Decline for Third Week

Asian spot LNG prices have fallen for three weeks due to slower demand with ample inventory levels and milder winter weather according to S&P Global.

• The average LNG price for February delivery into northeast Asia was down 3$/mmbtu from the previous week to 25$/mmbtu.
• Warm weather in Europe has driven the gas spreads in favour of spot delivery flows to Asia but interest from northeast Asian buyers remains muted. Ample LNG terminal inventories have limited the interest in diverting cargoes from the Atlantic LNG supply.
• Northeast Asia JKM was at a 0.45$/mmbtu premium to TTF, and at a 1.35$/mmbtu premium to the Platts Northwest Europe LNG derivative on Jan. 5.
• China’s easing of covid restrictions is forecast to support demand for LNG this year, with imports expected to rise 9-14% from last year to between 70-72m tonnes according to S&P Global sources.
  • TTF FEB 23 down -4% at 69.51€/MWh
  • JKM Feb 23 down -1% at 28$/mmbtu
  • JKM-TTF Feb 23 down -0.8$/mmbtu at 6.27$/mmbtu