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What do NGI’s 12-month Arbitrage Curves represent?
NGI’s 12-month Arbitrage Curves show the economics of shipping LNG from Sabine Pass to Asia (to the Futtsu import facility near Tokyo, Japan) or from Sabine Pass to Europe (to the Gate import terminal in Rotterdam, the Netherlands) over the next year. Find out more about NGI’s LNG Methodology & How to Read Guide here.
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How could NGI’s 12-month Arbitrage Curves inform my business decisions?
Arbitrage spreads are key to determining whether U.S. LNG is “in the money.” Negative, or very low spreads to key markets in Asia and Europe, are a leading indicator of U.S. LNG terminal shut-ins. When offtakers can’t make a premium overseas, they’re inclined to cancel cargo loadings, which their contracts generally allow up to 60 days in advance of scheduled offtake from U.S. terminals. The more profitable U.S. LNG is, the greater the demand for North American natural gas, which can have an impact on local prices as well. Access NGI’s LNG Methodology & How to Read Guide here.