Asian Premium Widens, Testing Europe's Pull on US LNG
Recurring heat waves across Europe and hotter forecasts for Northeast Asia are driving up demand for liquefied natural gas (LNG) this summer. The Asian premium on LNG has widened, putting pressure on US exports to maintain market share in the region.
The Daily Gas Price Index reports that feedgas volumes have held steady at around 17.8 billion cubic feet per day (Bcf/d). However, the outlook for gas prices is uncertain due to a cooler forecast for the US.
According to Natural Gas Intelligence, the heat waves in Europe and Asia are contributing to increased demand for LNG, which is putting pressure on US exports to maintain market share. The Asian premium has widened, making it more attractive for buyers to purchase LNG from other regions rather than the US.