April 29, 2024 09:43 GMT
US LNG Netbacks Favour Asia: BNEF
LNG
US LNG gas exports are more profitable to Asia in June, July, and August, according to BNEF.
- The gas spread between JKM and TTF for May currently stands at $1.24/MMBtu.
- In June, Asia earns a netback from the US of $7.16/MMBtu, compared to $6.12/MMBtu for Europe.
- In July, Asia’s netback is $6.90/MMBtu, while Europe’s is $6/04/MMBtu.
- In August, Asia remains the best netback at $7.12/MMBtu, above Europe’s $6.14/MMBtu.
- JKM prices are expected to move towards the $9/MMBtu range as production from Freeport LNG in the US increases supply.
- Strong gas storage levels and weaker demand is keeping a lid on European prices. However, there may be some upward motion is additional LNG cargoes are needed to meet storage restocking requirements.
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