Europe starts to assume its role as a flexibility tool to world LNG markets. It can do so without any problem and copious pipeline gas supply underpins this capability. This puts a pin in the assumed competition between pipeline and LNG in Europe as there is none. Pipelines enable LNG games such as this, re-exporting to destinations that pay a better buck. You might think, those terminals in North Western Europe are not used to bring gas into Europe. So what? If they are storage sites for re-export to Asia and everyone makes money on this arrangement, all the better for everyone involved.
Asian liquefied natural gas (LNG) prices rose this week on some demand for summer cargoes, while European prices continued to drop, with an increased price spread between the two regions triggering interest in sending some Atlantic cargoes to Asia Pacific.