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Prices Encourage Spot LNG to Europe

NATURAL GAS

Spreads still encourage LNG to Europe as they struggle with reduced pipeline supplies from Russia.

  • TTF is trading up 7.7% today to 137.0€/MWh and therefore pushing the spread to JKM is up to -5.3$/mmbtu.
  • At the close yesterday the US LNG netback to Europe was up to 31.26$/mmbtu but increasing prices in Asia have pushed the US netback to Asia to 28.03$/mmbtu.
  • There is no imminent resolution to the disruption to European gas pipeline supplies with discussions ongoing regarding the return of a gas turbine from Canada. TTF prices will need to maintain a premium to elsewhere in order to keep the supply of spot cargoes to secure supplies.
  • Daily imports in to NW and Eastern Europe have average 136k mt this week compared to a 5-year average of 57.5k mt for this time of year.

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