Webinar LNG short-term Q2 2018 - can the Pacific price premium be sustained?

High oil, coal and carbon prices have supported high gas prices for much of the last two years. But supply shortages in Europe have also contributed, driving gas to the top of the coal to gas switching curve. In Asia, demand has continued apace in China, but it is new tender demand emerging in South Asia, which has driven recent shortages. With LNG supply growth slow, particularly in the Pacific, prices escalated to close to oil parity briefly in June, before settling back to differentials which attract re-exports from Europe. Market tightness is set to continue through the rest of summer and into winter, but new supply from Australia and the US could change the outlook for summer 19. Growth from Australia could make the Pacific basin more balanced, with growth from the US and Russia adding to market liquidity.