Eastern Mediterranean LNG prices reached a near two-month high on July 25 due to heat waves pushing demand higher. Platts assessed the East Med LNG marker for September at $10.429/MMBtu and the West Med at $10.294/MMBtu, resulting in a spread of 13.5 cents/MMBtu, the widest since June 7. Both regions are priced at premiums over the Dutch TTF gas hub to attract cargo from Northwest Europe.
Mediterranean LNG Imports Increase
July saw a 13% year-on-year increase in Mediterranean LNG imports, totaling 2.28 MMt. Spain’s imports rose by 54%, reaching 1.65 MMt, the highest in Europe. Eastern Mediterranean imports increased by 31%, with Turkey’s imports more than doubling to 0.62 MMt. Heat waves in Spain, Portugal, and southern France boosted demand, leading to higher import volumes.
LNG-Gas Spread and Market Dynamics
The heat wave caused Mediterranean LNG-gas spreads to widen, with West Med pricing at premiums over the Spanish gas hub PVB. Higher prices and lower regasification fees attracted more cargoes to Spain and France. However, favorable arbitrage economics could also lead to reexports to Asia. East Med LNG demand lagged due to cheaper pipeline volumes, with Greece favoring Russian gas via the TurkStream pipeline.
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Source: S&P Global
