JKM Finding Some Support From Recent Buying Interest

The front month Asian JKM gas price has regained a little ground in the last couple of days with support from increased buying interest from price sensitive South Asian countries.

• Current levels just below 15$/mmbtu are still high compared to historical prices generally below 10$/mmbtu before mid 2021. A further reduction in spot prices would likely be required to boost LNG spot consumption in South Asia even further.
• Despite the JKM gains the global spreads still encourage spot deliveries to Europe over Asia. The April US netback to Europe is down slightly to 11.98$/mmbtu but the netback to Asia is back up to 10.77$/mmbtu. The summer netbacks also still favour US supply to Europe.
• The front month JKM-TTF spread has recovered to about -0.35$/mmbtu from a low of -1.62$/mmbtu on 23 Feb.
  • TTF MAR 23 down -3% at 49.5€/MWh
  • NBP MAR 23 down -2.9% at 124p/th
  • JKM Mar 23 up 0.6% at 14.99$/mmbtu
  • JKM-TTF Mar 23 up 0.5$/mmbtu at -0.35$/mmbtu
  • US Natgas APR 23 up 6.2% at 2.71$/mmbtu