August 08, 2022 09:33 GMT
JKM spreads to TTF hovering around 15$/mmbtu after closing in from -26$/mmbtu towards the end of June. TTF is trading near 200€/MWh while JKM has remained around 45$/mmbtu over the last week.
- Hot weather in Asia and Europe is putting extra pressure on LNG markets and keeping markets tight while supply remains limited. Japan and South Korea have drawn down inventories to cope with the high market prices which may increase competition for cargoes and keep prices strong during the upcoming winter months.
- Demand from Europe remains high with net imports around 200mcm/d due to low pipeline supplies from Russia. Freeport LNG in US is due to come back earlier than expected and Prelude LNG have deferred planned maintenance in September to next year due to the ongoing industrial action.
- Supplies may also be eased with the resolution of upstream issues in Peru and Egypt and shorter production timelines at new projects in the US and Mozambique.