
It’s getting cheaper to bring a shipment of liquefied natural gas into Europe because of heightening competition between terminals to accommodate extra cargoes.
The delivered price of LNG for northwest Europe widened its discount to the continental benchmark Title Transfer Facility in recent weeks, according to data from Spark Commodities Pte Ltd. The price difference was as much as minus 71.5 cents last week, according to the data.
Imports in western Europe reached their highest level for March in records going back to 2017, according to ship-tracking data compiled by Bloomberg. That’s happening as demand in Asia weakens, most noticeably in China, and Europe prepares to refill depleted inventories during the summer.
Greece’s Public Power Corp. SA last week bought an LNG cargo on a DES basis for May delivery at roughly a 70-cent discount to the TTF benchmark.
The widening difference demonstrates an increase in demand for delivery slots at European terminals, said Qasim Afghan, a commercial analyst at Spark.
As a result, all those facilities are now in the money, he said.
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