Global LNG Hub
No Result
View All Result
  • Login
  • Premium Content
    • All
    • Asian LNG
    • Australian LNG
    • European LNG
    • FLNG
    • Global LNG
    • LNG Africa
    • LNG Bunkering
    • LNG Latin America
    • LNG North America
    • LNG Projects
    • LNG Trade and Pricing
    • Middle East LNG
    • Small Scale LNG
    • Others
  • Blog
  • Events
  • Industry Links
    • LNG Industry Association
    • LNG Market Advisors
    • Government Body
    • LNG Market Information
    • LNG Legal Advisors
    • LNG Research Institute
    • LNG Training & Education
  • Newsletter
  • Videos
  • Other Hubs
    • GLOBAL MARITIME HUB
    • EUROPEAN GAS HUB
    • THE COAL HUB
  • Subscribe
  • My account
  • Login
SUBSCRIBE
  • Premium Content
    • All
    • Asian LNG
    • Australian LNG
    • European LNG
    • FLNG
    • Global LNG
    • LNG Africa
    • LNG Bunkering
    • LNG Latin America
    • LNG North America
    • LNG Projects
    • LNG Trade and Pricing
    • Middle East LNG
    • Small Scale LNG
    • Others
  • Blog
  • Events
  • Industry Links
    • LNG Industry Association
    • LNG Market Advisors
    • Government Body
    • LNG Market Information
    • LNG Legal Advisors
    • LNG Research Institute
    • LNG Training & Education
  • Newsletter
  • Videos
  • Other Hubs
    • GLOBAL MARITIME HUB
    • EUROPEAN GAS HUB
    • THE COAL HUB
  • Subscribe
  • My account
  • Login
Global LNG Hub
Home LNG Contracts & Pricing

LNG Arbitrage: Impressive Margins

Editor by Editor
2 years ago
min read1 min
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

Weekly trend of natural gas and LNG prices – February 06

Weekly trend of natural gas and LNG prices – February 06

2 days ago
Feedgas flows to Freeport LNG surge ahead

Feedgas flows to Freeport LNG surge ahead

4 days ago
LNG-prices

Weekly trend of natural gas and LNG prices – January 30

7 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

Weekly trend of natural gas and LNG prices – February 06
LNG Contracts & Pricing

Weekly trend of natural gas and LNG prices – February 06

2 days ago
Feedgas flows to Freeport LNG surge ahead
LNG Projects

Feedgas flows to Freeport LNG surge ahead

4 days ago
LNG-prices
LNG Contracts & Pricing

Weekly trend of natural gas and LNG prices – January 30

7 days ago
Natural gas prices down by over 40% across key gas markets
LNG Contracts & Pricing

Natural gas prices down by over 40% across key gas markets

7 days ago
Spot LNG trade fell in 2022
LNG Contracts & Pricing

Spot LNG trade fell in 2022

2 weeks ago
Global gas price correlation remains strong
LNG Contracts & Pricing

Global gas price correlation remains strong

2 weeks ago

Leave a Reply Cancel reply

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

No Result
View All Result

Trending Posts

Henry hub prices slide below $3

Henry hub prices slide below $3

2 weeks ago
LNG-prices

Weekly trend of natural gas and LNG prices – January 11

4 weeks ago
Global gas price correlation remains strong

Global gas price correlation remains strong

2 weeks ago
Load More

Recent Post

Weekly trend of natural gas and LNG prices – February 06

Weekly trend of natural gas and LNG prices – February 06

2 days ago
Feedgas flows to Freeport LNG surge ahead

Feedgas flows to Freeport LNG surge ahead

4 days ago
LNG-prices

Weekly trend of natural gas and LNG prices – January 30

7 days ago
Natural gas prices down by over 40% across key gas markets

Natural gas prices down by over 40% across key gas markets

7 days ago
Spot LNG trade fell in 2022

Spot LNG trade fell in 2022

2 weeks ago
Global gas price correlation remains strong

Global gas price correlation remains strong

2 weeks ago
Load More

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

Weekly trend of natural gas and LNG prices – February 06

Feedgas flows to Freeport LNG surge ahead

Weekly trend of natural gas and LNG prices – January 30

Energise your Wednesday!

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

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

© 2020 GlobalLngHub | All Rights Reserved

No Result
View All Result
  • Premium Content
    • All
    • Asian LNG
    • Australian LNG
    • European LNG
    • FLNG
    • Global LNG
    • LNG Africa
    • LNG Bunkering
    • LNG Latin America
    • LNG North America
    • LNG Projects
    • LNG Trade and Pricing
    • Middle East LNG
    • Small Scale LNG
    • Others
  • Blog
  • Events
  • Industry Links
    • LNG Industry Association
    • LNG Market Advisors
    • Government Body
    • LNG Market Information
    • LNG Legal Advisors
    • LNG Research Institute
    • LNG Training & Education
  • Newsletter
  • Videos
  • Other Hubs
    • GLOBAL MARITIME HUB
    • EUROPEAN GAS HUB
    • THE COAL HUB
  • Subscribe
  • My account
  • Login

© 2020 GlobalLngHub | All Rights Reserved

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

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

Log In
We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
Cookie settingsACCEPT
Manage consent

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Non-necessary
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.
SAVE & ACCEPT

Energise Your Wednesday!

SIGN UP to receive our weekly newsletter with new LNG market reports, presentations & analysis. EVERY WEDNESDAY!

Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?