Asian LNG price premium under pressure again

As European gas prices rise, the region’s discount to Asia-Pacific is decreasing

The five-day moving average (MA) of the premium held by North Asian LNG over the European benchmark Dutch TTF gas market fell for a fourth consecutive day at Wednesday’s close, according to data from price reporting agency Argus Media. It is the first four-day tightening of the spread since early May and could suggest the bullishness of a storage-constrained European gas market is again taking the primary lead in global gas strength. Argus assessed the TTF August contract at just shy of $10.70/mn Btu, still almost $1.25/mn Btu higher than its August Anea price for LNG delivered into North Asia (see Fig. 1). On a five-day MA basis, the spread was just under $1.60/mn Btu. $10.70/mn Btu –