Colder Weather Lifts LNG Prices as Europe’s Premium to Asia Widens

Editor’s Note: This content is provided courtesy of Independent Commodity Intelligence Services (ICIS). Visit natgasintel.com/icis for more information.

LONDON (ICIS) – Forecasts of colder temperatures in northeast Asia lifted the ICIS East Asia Index (EAX) on Thursday, in contrast to its downward trajectory throughout most of the week.

Utilities in Japan saw a drop in weekly LNG stocks, and economic weakness in China continued to be a market focus. Reported LNG tender activity in Asia was relatively thin, with a southeast Asian award standing out.

Colder temperatures were also forecast for Europe, helping to lift the ICIS TTF January ‘23 price by more than $5/MMBtu over the week. The roughly $5/MMBtu TTF premium to the EAX more than doubled, potentially attracting more cargoes to Europe, which in November saw record highs in LNG imports and sendout to the…