Europe has been awash with surplus LNG in 2020. This has been a big factor behind the fall in TTF spot prices below 5 €/MWh. But this has started to change from mid-May 2020. The chart shows how daily European regas terminal send out volumes have halved from mid-May to mid-Jun. There are two factors behind this: (i) US LNG shut ins are reducing surplus LNG cargoes flowing to Europe and (ii) Asian demand has started to recover. This sharp decline in LNG imports points to rising TTF prices across H2 2020.
US shut ins drag down European LNG imports