Free Trial
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.
LNG
Asian LNG demand flexibility is rapidly emerging as a new force for setting global marginal prices, according to Timera Energy, as demonstrated by the limited JKM price rise in 2022 and Asia ability to absorb surplus LNG at lower prices last winter.
- The structural growth in Asian demand response is driven by economic growth, declining domestic gas reserves and gas transition amid pollution issues.
- Historically the European power switching flex has played a key role driving pricing dynamics while US export flex can provide strong price support. European coal fleet closures are also boosting the importance of Asian flex.
- The importance of Asian demand flex is set to increase substantially across the next few years.
- Asia has about 50mtpa or more of fuel switching & industrial price response, but flex is typically less elastic and often lagged.
- European power switching is important across a $10-$15/mmbtu gas price range and US export flexibility is more relevant in an oversupplied market adding support around the $5-$7 $/mmbtu range.
- Key categories of Asian flex response are demand destruction as LNG prices rise, power generation fuel switching, industrial fuel switching, pipeline gas substitution and policy driven response.
Source: Timera Energy
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.
We are facing technical issues, please contact our team.
ok
Your request was sent sucessfully! Our team will contact you soon.
ok