July 05, 2022 10:36 GMT
LNG imports into NW and Eastern Europe are maintaining above normal levels and helping to continue injections into storage.
- The weekly average of daily flows was 162mcm/d last week compared to an average of just 58mcm/d for this time of year. The outage of the US Freeport LNG export terminal has not so far caused a net reduction in flows to Europe with spreads strongly encouraging the delivery of spot cargoes.
- As TTF prices have continued to surge higher the spread to Asia has significantly increased. JKM is currently trading at a -13.8$/mmbtu discount to TTF. The current estimateion for the US LNG netback to Europe is 44.3$/mmbtu and to Asia is 31.2$/mmbtu.
- European storage is up to 59.4% with Germany up to 62.27%, Italy at 60.72%, France at 64.20% and Netherlands at 54.11%.
- The graph below shows the weekly average of the net LNG flows into NW Europe: