LNG shipments to Europe are becoming cheaper due to increased competition among terminals for extra cargoes. The discount to the Title Transfer Facility benchmark widened to as much as -71.5 cents last week, according to Spark Commodities.
Western Europe saw record-high March LNG imports since 2017, driven by weakening Asian demand, especially in China, and Europe’s need to replenish gas inventories for summer.Greece’s Public Power Corp. SA purchased an LNG cargo last week on a DES basis for May delivery at approximately a 70-cent discount to the TTF benchmark.
The growing price gap reflects rising demand for delivery slots at European terminals, according to Qasim Afghan, a commercial analyst at Spark.As a result, all these terminals are now operating profitably, he added.
