More than 1.3 million cubic metres (mcm) of LNG, or 800 mcm of pipeline gas, is inbound on officially announced tankers from Qatar, Norway and Trinidad. That’s double the same time last year and enough to cover three days of British winter demand. […][A] 60-percent drop in Asian prices in the past year, driven by a streak of mild weather and new supplies, has again made Europe the most attractive market for flexible cargoes. British and Dutch prices for March are trading at a $1.20 per million British thermal units (mmBtu) premium to Asia.
Since the beginning of the troubles in Ukraine, European policymakers have talked of boosting LNG imports as a way to lessen their dependence on Russian gas. At the time we noted that LNG suppliers would send their product to the market where they could fetch the highest price, which for some time has been Asia.Now that Asian premium looks to be a thing of the past, and Europe is looking a likely destination for more LNG cargo. That should lessen demand for Russian gas—a worrying sign for Gazprom as sales to Europe are already down.