European LNG prices have plummeted to a near nine-month low below USD 7/MMbtu – tracking sinking European hub prices amid healthy supply and mild weather.
The landing price for front-month delivery of LNG delivered ex-ship (or DES) to northwestern Europe was assessed late on Monday at USD 6.97/MMbtu (EUR 22.07/MWh), USD 0.33 lower from Friday’s settlement. It was also the lowest since 1 June 2023, when it hit USD 6.63/MMbtu, according to data from Spark Commodities.
Prices were shadowing the benchmark front-month gas contract on the Dutch TTF hub, which sank to an eight-month low of EUR 23.55/MWh in late trading on Monday, before settling at EUR 23.70/MWh.
Pipeline and LNG supplies are robust.
LNG for Europe is now pricing below USD 8/MMbtu until November, according to Spark’s forward curve. Meanwhile, Asian LNG prices in the JKM were unchanged from Friday at USD 8.57/MMbtu.
However, there was demand limiting gains as Chinese buyers returned from the Lunar New Year holiday. Despite this, flat JKM prices and sinking TTF ones widened the arbitrage to Asia. It is more profitable to ship vessels from Sabine Pass to the Pacific through the Cape of Good Hope, despite longer voyage times, according to Spark data
Source: Andrés CALA, Montel
