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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.
LNG
The margin of benefit to send US LNG to Europe over Asia is closing
- As TTF prices have fallen over the last ten days, the US netback to Europe has fallen from nearly 18.5$/mmbtu to just 13.8$/mmbtu today. In the same time period the netback to Asia has remained relatively unchanged and currently estimated at 11.65$/mmbtu.
- Going forward there is the risk to European supply that demand recovery in China will increase competition for LNG and could push prices higher again. The forward prices suggest the US netbacks remain just in favour of Europe for the balance of the year.
- Net LNG flows to NW Europe are hovering around 200mcm/d compared to over 250mcm/d during April but remain above seasonal normal levels.
- The graph below shows net LNG NW Europe imports this year compared to the 5-year range:
Source: Bloomberg
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.
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