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Alex Froley, LNG Market Analyst at ICIS summarises key developments and performances in the first quarter of 2021 and explores what suppliers and buyers would be watching out for as we move into warmer weather.
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France to attract more LNG from the US amid tight PEG/EAX spread
French LNG terminals are likely to keep attracting LNG cargoes from the United States this summer, on the back of an increasing PEG premium to the Henry Hub front month and tight spreads between French PEG and Asian LNG prices.
The United States were France’s first source of LNG supply in both March and April so far, accounting for more than 30% of the total LNG imports in March and 37% in the first half of April.
The PEG May ‘21 contract traced up again in recent sessions after dropping $0.7/MMBtu below the front-month ICIS East Asia Index (EAX) on 9 April.