Falling JKM Price Promotes Interest from Asian LNG Buyers

Asian JKM prices have followed the decline in European gas markets with front month falling 37.5% this year compared to a decline of 30.4% in TTF.

• Asian LNG buying interest has increased with prompt JKM prices at their lowest level since 2021. Traditional LNG importers Japan and South Korea added a combined 1bcm of imports month-on-month in January.
• Price-sensitive buyers in South Asia such as Thailand, India and Bangladesh have recently increased buying interest.
• The March JKM contract is trading just above TTF after spending the second half of last year at a significantly discount. The higher spread is a sign of the global competition for LNG between the European and Asian markets.
• European LNG imports dropped 9% or 1.7bcm month-on-month in January due to warm winter temperatures, economic demand reductions, and high gas inventory levels.
• Asian LNG imports rose in January by 0.5bcm to the highest level for a year.
  • TTF MAR 23 down -1.2% at 53.05€/MWh
  • NBP MAR 23 down -1% at 133.25p/th
  • JKM Mar 23 down -1.4% at 17.93$/mmbtu
  • JKM-TTF Mar 23 down -0.1$/mmbtu at 1.16$/mmbtu
  • US Natgas MAR 23 up 1.5% at 2.43$/mmbtu

Source: Bloomberg