European Heatwave Drives Up LNG Price Premium Over Asia

The European heatwave has led to an increase in the price premium of liquefied natural gas (LNG) over Asia, as storage levels in Europe remain low and Middle Eastern supply risks persist.

Cooling demand forecasts have eased across both continents this week, but European natural gas buyers are raising competitive bids for US LNG volumes due to thin storage levels and the risk of disrupted Gulf gas production from Edouard.

The TTF (Title Transfer Facility) in Europe holds a premium over the JKM (Japan Korea Marker), while feedgas has recovered from maintenance lows. However, the European heatwave is expected to continue, potentially exacerbating supply risks.