LNG
LNG supplies into Europe have edged higher into this week driven by higher heating demand from the cold weather before temperatures in NW Europe return to normal next week.
- Storage is still at 80% full and steady imports have helped pushed TTF prices lower, but LNG supply risks are providing support with the potential that higher demand in Asia could draw supplies away from Europe.
- Net LNG import flows to NW Europe have increased from 212mcm/d on 14 Jan to 292mcm/d on 17 Jan. Total LNG supplies into Europe were up to 464mcm/d on 17 Jan having averaged around 400mcm/d so far this year.
- The Feb JKM-TTF spread is hovering around +3$/mmbtu with JKM above TTF since 19 Dec. The estimated US netback to Europe for March is relatively unchanged at 15.15$/mmbtu but the netback to Asia is higher up to 18.37$/mmbtu. The netbacks for the summer months slightly favour flows to Europe over Asia.
- TTF FEB 23 up 2.9% at 62.5€/MWh
- NBP FEB 23 up 3.8% at 158.25p/th
- JKM Feb 23 down -0.6% at 22.95$/mmbtu
- JKM-TTF Feb 23 down -0.8$/mmbtu at 3.05$/mmbtu
- US Natgas FEB 23 down -1.3% at 3.23$/mmbtu
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