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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.
LNG
Higher temperatures and lower reservoirs have boosted West Med LNG prices to a premium against NWE in August, according to Platts.
- A surge in demand is positioning Spain as Europe’s top importer of LNG.
- Spanish hydro reserves have fallen, and temperatures hit 40C in pockets of the Iberian Peninsula. Heatwaves are also pulling on gas inventories in some Med countries, Platts added.
- Liquidity in NWE remains stagnant; sellers with shipping capitalise on higher premiums in Spain.
- The West Med was at a 5.5 cents/MMBtu premium to NWE Aug. 13 and has averaged a 6 cents/MMBtu premium in August to date, and 1 cents/MMBtu in 2024 to date.
- Historically the Mediterrranean market would price at a premium to NWE due to higher shipping costs for spot cargoes arriving from Russia’s Arctic Yamal facility.
- After Russia invaded Ukraine, Europe pivoted away from Yamal spot to the US, leaving a negligible shipping difference.
Source: S&P Global Commodity Insights
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.
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