Free Trial

Recent TTF Rally Shuts US-Asia Flow via Cape of Good Hope: Spark

LNG

The US arbitrage window to Northeast Asia via the Cape of Good Hope has been open for most of 2024, but recent increases in LNG freight rates resulted in the arbitrage window being marginal until Oct. 2024.

  • Northwest Europe has now become the most profitable region for delivering a US LNG cargo over the next 12 months.
  • For July loading at Sabine Pass, the netback for NWE is around a $13.4 cents/MMBtu premium over Asia.
  • Yet, TTF prices remain volatile, Spark noted and the JKM-TTF needs to widen by just 10-20 cents/MMBtu to reopen the Asia arbitrage window during the summer.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.