Covid-19’s first wave showed exactly how integrated LNG has become into the liquid gas hubs of northwest Europe. When Asia started to cancel cargos as national lockdowns crushed demand, these volumes were rerouted to Europe, where they served to ‘top up’ US exports also delivering into LNG’s market of last resort.
The resultant oversupply sent strong bearish price signals. But, as the benchmark TTF price plunged by early June, the US cancelled a swathe of cargos, supply was curtailed and—as demand recovered—TTF surged by over 60pc over the last few months.
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