European LNG flows are showing signs of a shift back towards the region, with six cargoes redirected to Europe so far in August compared with only two moving away. The reversal follows May and June, when around 12–13 cargoes per month were redirected from Europe towards Asia.
So far in August, Kpler has tracked six cargoes redirected towards Europe (~0.4 mt), versus only two moving away.
That is a sharp reversal from May and June, when around 12–13 cargoes per month were redirected away from Europe towards Asia.
European LNG is not out of the woods yet: Atlantic Basin loadings through July still show the impact of strong Asian competition.
But Kpler’s destination forecast is signalling higher loadings towards Europe, supported by a more favourable NWE DES–TTF spread and a closed arbitrage to Asia as the region’s peak summer demand season starts to wind down.
A first sign that Europe is regaining some pull in the global LNG market.
Source: Arturo Regalado, Senior Natural Gas Analyst, Kpler
