Europe is buying LNG, but in May Asia is ready to pay more

In March, the European Union sets a new record for LNG imports to cover the low reserves left after the winter. However, prices for May are already higher in Asia, which may take away some of the liquefied gas.

In March of the country The EU sets a new record for imports of liquefied natural gas. According to GIE, the average daily shipments from the terminals amount to 467 million cubic meters per day during the eight days of the first month of spring. This is 12% more than the previous record — in February.

The heating season is not over yet, but after the warming, European companies are in a hurry to restore stocks due to uncertainty with prices and supplies due to the Iranian crisis. So, on March 8, gas injection into the storage facilities of the EU countries exceeded the selection — 162 million cubic meters against 153 million cubic meters. By next winter, European companies will have to buy billions of cubic meters, as the filling of storage facilities has dropped to 29% and the difference from the end of the last heating season is already 5 billion cubic meters.

At the same time, prices have increased by 50% due to the Iranian crisis and amount to $ 600 per thousand cubic meters at the TTF hub on March 10.

UAE and Qatar has stopped LNG supplies, most of which go to Asia. However, rich Asian countries will outbid the cargo that is now going to Europe. According to the CME Group, LNG for the countries of Northeast Asia (JKM) rose to $ 745 in May, while in Europe they remain at $ 572.

In addition, the first ban on Russian gas supplies to Europe comes into force in April — short-term LNG sales should stop. They are provided by Yamal LNG, which is delivering all its liquefied gas to Europe this year.

Alexey Grivach, Deputy Director of the National Energy Security Fund (NWF), believes that Europe may find itself in a dangerous situation.

"The preservation of such prices threatens a new round of the energy crisis and another blow to energy-intensive industries. Again, state support will be required to curb tariffs and finance gas injection into storage facilities for the next heating season," the expert notes.

The day before, Russian President Vladimir Putin did not rule out that Russian companies could restore supplies to Europe.

"I asked you to come to consult on all these issues: if European companies, European buyers suddenly decide to reorient and provide us with long—term, sustainable joint work, devoid of political conjuncture, freed from political conjuncture - please, we have never refused, we are ready to work with Europeans. But we need some signals from them that they are ready and also want to work and will provide us with this stability and stability," the Russian leader said at a meeting on the situation on the world oil and gas market.