Spot JKM prices have surged above $14/mmbtu due to:
- A tight shipping market, as spot LNG time charter rates pass $150k/d (green line); tightness driven by a jump in interbasin flows and Panama Canal delays greatly reducing vessel availability, highlighted by multiple Feb-21 US cargo cancellations despite the deeply in the money netbacks
- Firm winter demand in NE Asia, with cool temperatures, low nuclear availability in Japan and a tight energy market in China.
This perfect storm has seen European reloads to Asia become economic, for the fortunate market participants with the available shipping, as the low cargo availability in Asia sees the market price towards demand destruction.