Extreme weather in Asia is driving global LNG demand
Now, extreme weather in Asia is driving global LNG demand, which in turn is supporting European gas and power pricing. The global commodity complex at work!
- LNG data from last week shows a cargo diverting from Europe to Asia, where high temperatures are boosting cooling demand.
- Underlying NBP and TTF gas benchmarks are at 2-week highs.
- This morning Green Gas Markets traded up around 1%.
- PPA pricing is flat to Friday’s close.
- In the short term, it is still likely that “Trump tariff concerns” will cap any significant price upside.
- Goldman Sachs reports that “gas inventories by the end of the summer will be over 80% full.”
In other news this morning, we watch US rhetoric around further military support for Ukraine.
If you have any questions or would like to discuss PPA or green gas fixing strategy, please let us know.
Regards
NSR PPA Desk