A roundup of news and commentary from NGI’s LNG Insight
- Trafigura Group Pte. Ltd. purchased an LNG cargo from Gunvor Group Ltd. for $20.80/MMBtu for early February delivery to Incheon, South Korea, which set a record for Japan Korea Marker (JKM) prices, according to Bloomberg.
- Sky-high JKM prices are pulling cargoes away from Europe, where both imports and LNG sendouts remain low as the year gets underway, according to analysts at Engie EnergyScan. Prices are up on the continent as well.
- Russian natural gas flows into Europe dropped by 2.3 Bcf/d to begin 2021, as 2.4 Bcf/d of contracts to transit the Ukrainian transmission system expired, “further tightening an already tight European market,” said Tudor, Pickering, Holt & Co. analysts. The step down from 6.3 to 3.9 Bcf/d was part of a renegotiated contract between the two countries signed last year.
- The UK government has imposed another full lockdown until at least mid-February to combat a highly transmissible variant of Covid-19, again threatening natural gas demand in the country.
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