Rebounding China LNG Demand Risks Faster Depletion of EU Winter Gas

Rebounding LNG demand in China would not prevent Europe refilling its storage facilities this summer but could see a faster depletion of EU gas stocks this winter according to Wood Mackenzie.

• LNG imports into China last week reached the highest since the first week of the year at more than 2.1bcm according to Kpler ship tracking data.
• High storage levels, strong LNG imports and lower gas demand have helped bring European gas down within the pre 2021 normal pricing range.
• TTF has this week fallen below JKM highlighting that the potential return of the Asian premium later this year remains an upside risk for European gas prices. Front month JKM-TTF is today trading around 0.1$/mmbtu however the remaining summer months still show a TTF premium of up to -2$/mmbtu.
  • TTF JUN 23 up 2.1% at 30.43€/MWh
  • NBP JUN 23 up 1.2% at 68.57p/th
  • JKM Jun 23 down -1.1% at 9.72$/mmbtu
  • JKM-TTF Jun 23 down -0.3$/mmbtu at 0.09$/mmbtu
  • US Natgas JUN 23 up 2.5% at 2.66$/mmbtu