global-hydrogen-hub global-hydrogen-hub global-hydrogen-hub
Global LNG Hub Logo
No Result
View All Result
  • Login
  • Premium Content
  • Blog
  • Events
  • Industry Links
    • LNG Industry Association
    • LNG Market Advisors
    • Government Body
    • LNG Market Information
    • LNG Legal Advisors
    • LNG Research Institute
    • LNG Training & Education
  • Other Hubs
    • GLOBAL MARITIME HUB
    • EUROPEAN GAS HUB
    • THE COAL HUB
    • GLOBAL HYDROGEN HUB
    • GLOBAL MINERALS HUB
  • FREE TRIAL
  • My account
  • Login
Cart / €0.00

No products in the cart.

  • Premium Content
  • Blog
  • Events
  • Industry Links
    • LNG Industry Association
    • LNG Market Advisors
    • Government Body
    • LNG Market Information
    • LNG Legal Advisors
    • LNG Research Institute
    • LNG Training & Education
  • Other Hubs
    • GLOBAL MARITIME HUB
    • EUROPEAN GAS HUB
    • THE COAL HUB
    • GLOBAL HYDROGEN HUB
    • GLOBAL MINERALS HUB
  • FREE TRIAL
  • My account
  • Login
Global LNG Hub
No Result
View All Result
Home LNG Contracts & Pricing

LNG Arbitrage: Impressive Margins

Editor by Editor
4 years ago
Reading Time: 1 min read
LNG prices
Share on FacebookShare on TwitterShare on Linkedin

LNG production margins from the US Gulf Coast to markets around the world varies day by day due to fluctuations in charter costs, agent and insurance fees, and canal costs. The chart shown above seeks to capture the cryo-spread between the Henry Hub and the JKM (Japan-Korea Marker) as well as the NBP (National Balancing Point in the UK) – it should be noted that regasification and liquefaction fees were not factored in this calculation.

RELATED POSTS

Plaquemines LNG

European LNG imports surge by a staggering 40%

4 days ago
LNG-prices

Review of natural gas and LNG prices

5 days ago
natural-gas-prices

Middle East crisis fuelled strong price volatility across Asian and European markets

6 days ago

On average, Henry Hub forwards trade at nearly a $4.5 discount to the NBP and the JKM. In the past, there have been instances where the margin has completely vanished, like in summer 2020 when international prices converged, as well as instances where extreme dislocations can be noted, such as in winter 2020 when the JKM soared to over $20/bbl in response to high Asian winter demand.

Currently, international forward benchmarks remain elevated and lower than normal European storage levels will give exporters incentive to ship to Europe in the coming summer.

Breakeven spreads to the NBP remain positive, and are higher than those of the JKM in May through July. However, forward markets indicate that European prices will fall to their traditional $6-7 range beyond the current storage injection season and scede the advantage to Asian destinations next winter.

Regardless of these outcomes, there is little probability for cargo cancellations from the US given the strong summer profit opportunities available for Gulf Coast shippers in both Asia and Europe.

Source: Gelber & Associates

Tags: gas storageGelberHenry Hub pricesJKM pricesLNG arbitrageNBP prices
Editor

Editor

Related Posts

Plaquemines LNG
LNG Contracts & Pricing

European LNG imports surge by a staggering 40%

4 days ago
LNG-prices
LNG Contracts & Pricing

Review of natural gas and LNG prices

5 days ago
natural-gas-prices
LNG Contracts & Pricing

Middle East crisis fuelled strong price volatility across Asian and European markets

6 days ago
risk-premium-LNG
LNG Contracts & Pricing

All eyes on LNG demand as gas prices recede

7 days ago
gas-price-volatility
LNG Contracts & Pricing

Israel – Iran tensions drive gas price volatility

1 week ago
LNG-pricing
LNG Contracts & Pricing

The share of hub-based LNG pricing rose to over 50% for the very first time in 2024

1 week ago

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

No Result
View All Result

Trending Posts

LNG-pricing

The share of hub-based LNG pricing rose to over 50% for the very first time in 2024

June 27, 2025
LNG-prices

Review of natural gas and LNG prices

June 18, 2025
risk-premium-LNG

All eyes on LNG demand as gas prices recede

June 30, 2025

Recent Post

Plaquemines LNG

European LNG imports surge by a staggering 40%

July 3, 2025
LNG-prices

Review of natural gas and LNG prices

July 2, 2025
natural-gas-prices

Middle East crisis fuelled strong price volatility across Asian and European markets

July 1, 2025
risk-premium-LNG

All eyes on LNG demand as gas prices recede

June 30, 2025
gas-price-volatility

Israel – Iran tensions drive gas price volatility

June 30, 2025
LNG-pricing

The share of hub-based LNG pricing rose to over 50% for the very first time in 2024

June 27, 2025
LNG-HUB-Logo

Online platform for sharing analysis and information on Global and regional LNG markets. Weekly newsletter each Wednesday more info

Categories

  • Asian LNG
  • Australian LNG
  • European LNG
  • Global LNG
  • LNG Africa
  • LNG Bunkering
  • LNG Latin America
  • LNG North America
  • LNG Projects
  • LNG Trade and Pricing
  • Middle East LNG
  • Small Scale LNG
  • FLNG

Recent Posts

European LNG imports surge by a staggering 40%

Review of natural gas and LNG prices

Middle East crisis fuelled strong price volatility across Asian and European markets

Energise your Wednesday!

Sign up to receive our weekly newsletter with new LNG market reports, presentations & analysis. Every Wednesday!

Your subscription could not be saved. Please try again.
Your subscription has been successful.

By signing up, I agree to our TOS and Privacy Policy.

© 2020 GlobalLngHub | All Rights Reserved

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Premium Content
  • Blog
  • Events
  • Industry Links
    • LNG Industry Association
    • LNG Market Advisors
    • Government Body
    • LNG Market Information
    • LNG Legal Advisors
    • LNG Research Institute
    • LNG Training & Education
  • Other Hubs
    • GLOBAL MARITIME HUB
    • EUROPEAN GAS HUB
    • THE COAL HUB
    • GLOBAL HYDROGEN HUB
    • GLOBAL MINERALS HUB
  • FREE TRIAL
  • My account
  • Login

© 2020 GlobalLngHub | All Rights Reserved

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.