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US LNG Netbacks Decline on Falling EU and Asian Gas Prices

LNG

The US netbacks continue to decline with falling gas prices in Europe and Asia. The netback to Europe for March is down to 14.55$/mmbtu compared to the US netback to Asia at 16.83$/mmbtu. The US netback to Europe has fallen from around 36$/mmbtu at the start of December and nearly 20$/mmbtu at the start of the year.

  • The US netbacks for the summer months are currently favouring flows to Europe over Asia.
  • LNG supplies into NW Europe were at 320mcm/d on 23 Jan with total EU sendout at 479mcm/d. NW European imports averaged 294mcm/d over the previous week.
  • Another 15 LNG cargoes are expected into NW European LNG terminals this month.
    • TTF FEB 23 down -0.6% at 56.3€/MWh
    • NBP FEB 23 up 1.1% at 144.75p/th
    • JKM Feb 23 down -7.1% at 21.06$/mmbtu
    • JKM-TTF Feb 23 down -1.2$/mmbtu at 3.01$/mmbtu
    • US Natgas FEB 23 down -7.6% at 2.83$/mmbtu

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