Global gas & LNG weekly summary: 11 February 2022

Prices indicate that LNG deliveries to Europe will drop in coming weeks as LNG trade flows shift towards NE Asia. TTF was down another 5% this week, as weather models continue to forecast warmer than normal temperatures in Europe while temperatures in NE Asia look somewhat mixed. NE Asia prices dropped an average of 11% this week as well but were still able to maintain their premium to TTF for the balance of 2022. This continues to indicate that the high level of LNG Europe has been receiving over the last 6 weeks will soon come to an end. If this happens, a higher level of risk will again return European balances which have enjoyed a respite over the last several weeks. Seasonally low demand, increasing Russian imports, and the aforementioned record LNG receipts have led to storage withdrawals averaging 18.6% less than the 5-year average since the start of the year.