Global gas & LNG weekly summary: 22 Dec 2022

TTF premium over Northeast Asia dissipates, as European demand falls and storage withdrawals soften amid warmer weather TTF lost its large premium over Northeast Asia as the more profitable destination to send a cargo from the U.S. this week. The two are nearly equal down the curve for 2023, with Northeast Asia gaining an outright premium over TTF for the March and October contracts. The decrease in European prices, relative to Asia, came as European demand started softening this week on warmer temperatures. At the same time, Northeast Asia is finally starting to see colder-than-average weather. Also contributing to the fall was the EU’s announced price cap trigger on TTF that kicks in at 180 euros/megawatt hour. Even though front-month prices are nearly half of the agreed upon price cap today, markets responded with accelerated selling.