Low LNG Flat Prices Boost East Med Buying Appetite

Falling LNG prices is driving up buying activity in the East Med, according to Platts, with Red Sea tensions pushing buyers to pull supplementary volumes from elsewhere.

• East Med flat prices Feb. 12 hit at their lowest level since Dec. 20 at $7.802/MMBtu, at a 32.5 cents/MMBtu premium to TTF.
• The diversions away from the Red Sea via the Cape of Good Hope have boosted prices relative to West Med or NWE, as Qatari volumes are stymied.
• “Turkey's LNG demand could continue to find support from reduced Iranian pipeline imports following a contractual dispute between Botas and the National Iranian Gas Company NIGC,” Kelli Krasity, director at S&P Global, said.
• February imports as of Feb. 13 into the East Med, including Turkey, Croatia and Greece, were 790k mt, around 45% of whole-month Jan levels, Plats said.