Interbasin LNG spreads rocket

Spot JKM prices have surged above $14/mmbtu due to:

RELATED POSTS

Norwegian gas decline pushes European storage injections further down

6 days ago

Europe’s exposure to a wild and volatile global gas market

2 weeks ago

Cross-commodity correlation between TTF, power and carbon prices continued to strengthen

2 weeks ago

• A tight shipping market, as spot LNG time charter rates pass $150k/d (green line); tightness driven by a jump in interbasin flows and Panama Canal delays greatly reducing vessel availability, highlighted by multiple Feb-21 US cargo cancellations despite the deeply in the money netbacks
• Firm winter demand in NE Asia, with cool temperatures, low nuclear availability in Japan and a tight energy market in China.

This perfect storm has seen European reloads to Asia become economic, for the fortunate market participants with the available shipping, as the low cargo availability in Asia sees the market price towards demand destruction.

Source: Timera Energy

[tfws username=”TimeraEnergy” height=”700″ width=”350″ theme=”light” color=”#FAB81E” tweets=”2″ header=”yes” footer=”yes” borders=”yes” scrollbar=”yes” background=”yes”]