Asia is ready to pay more: gas prices are falling, but it's not easier for Europe

After the announcement of the peace agreement, the United States and Iran's world gas prices are declining. However, Asia is still willing to pay more and take LNG cargoes from Europe.

USA and Iran has announced a peace agreement and gas in Europe has fallen sharply. Deliveries for the month ahead dropped to $ 513 per thousand cubic meters. If you do not take into account a few days in April, this is the lowest level in the last three months.

The market is waiting for the Strait of Hormuz to open. However, it is still unknown how quickly Qatar will be able to resume LNG production. In addition, 17% of the country's capacity is damaged.

Therefore, competition for liquefied gas remains and Asian consumers will continue to struggle with countries EU for cargo. At least the rich ones are Japan, South Korea and China.

The cost of LNG for Northeast Asia remains above European quotations — $ 575.

In this situation, the situation of countries The EU will not get better with some cost reductions. The gap between the level of reserves of the past and this year continues to grow and will soon reach 10 billion cubic meters. At the same time, no one knows when there will be more LNG supplies on the market.

As reported by EADaily, the global climate phenomenon El Nino can dramatically increase the demand for gas around the world. Because of this, not only will the competition between Between the EU and Asia, Europe may just need more fuel than last winter.

"In general, according to our estimates, winter gas demand in Western and Central Europe may increase by 6.7 billion cubic meters during the El Nino years," the ICIS analytical agency said.

At the same time, the current level of injection will allow to replenish the storage facilities only to 80 billion cubic meters, whereas a year ago the reserves amounted to 90 billion cubic meters before the heating season.