3 April | Gas

Cost of LNG shipments to Europe declines amid strong demand

Cost of LNG shipments to Europe declines amid strong demand

Bloomberg reports shipping liquefied natural gas (LNG) to Europe is getting cheaper due to heightening competition between the region’s terminals to accommodate extra cargoes. 

Ship-tracking data compiled by the news agency shows LNG imports to Western Europe in March reached the highest level since 2017. This is happening because of lower demand in Asia, primarily in China, and the EU’s preparations to replenish gas reserves in summer.

According to Spark Commodities Pte Ltd, in recent weeks, the delivered price of LNG for northwest Europe has been down against the benchmark Title Transfer Facility (TTF). Last week, the discount reached 71.5 cents, the company reports. 

At the same time, Greece's Public Power Corp. SA purchased a gas cargo on a DES basis for delivery in May at a discount of 70 cents to the TTF benchmark, Bloomberg says.

Qasim Afghan, an analyst at Spark, believes this demonstrates stronger demand for delivery slots at LNG terminals in Europe.

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