Lower NE Asian LNG Prices Attract Thailand Purchases

Lower Asia spot LNG prices have attracted Thailand to restock supplies according to Bloomberg.

• In a tender which close on 27 Jan PTT purchase at least four LNG cargoes for delivery in Feb-Apr at around 18-19$/mmbtu.
• Higher LNG demand from Asia is a risk to Europe gas supplies which will remain heavily reliant on strong LNG imports due to the missing Russian supplies.
• Gas spreads suggest is it more profitable to send US LNG export to Asia instead of Europe in March. The US netback to Europe is estimated at 14.00$/mmbtu and the US netback to Asia is 15.35$/mmbtu.
• Netbacks to Europe and Asia for the coming summer period are near parity although slightly favour flows to Europe.
  • TTF FEB 23 up 2.3% at 56.72€/MWh
  • NBP FEB 23 up 4% at 146.5p/th
  • JKM Feb 23 down -5.2% at 19.5$/mmbtu
  • JKM-TTF Feb 23 down -1$/mmbtu at 1.29$/mmbtu
  • US Natgas MAR 23 down -4.2% at 2.73$/mmbtu