West Med LNG prices hit strongest level against TTF gas hub price since Oct

LNG prices in the West Mediterranean have climbed to multi-month highs against the Dutch TTF gas hub price amid strong buying interest.

Platts, a part of S&P Global Commodity Insights, assessed the Mediterranean LNG marker at a 27.5 cents/MMBtu discount to the Dutch TTF gas price on March 26, which represented the narrowest discount since the spread hit 18 cents/MMBtu on Oct. 3.

Imports into the West Mediterranean have remained healthy, despite relatively weak heating season demand, with traders suggesting that prompt buying interest has picked up.

LNG imports in March into the West Med -- including Spain, Portugal and the south of France -- stood at 1.83 million mt as a of March 27, according to S&P Global LNG analytics.

Volumes in March were around 83% of the level's seen in full-month February, which represented the highest monthly import level since November.

Spain accounted for the largest chunk of imports, at 1.19 million mt.

LNG traders said that buying interest has seen support in Spain as players bring in volumes to reroute cargoes to Asia. As a result, despite the recent volatility in gas and LNG prices, the differentials between the two commodities has remained relatively steady, with bids and offers in the market holding their ground.

Although prices in Asia have seen weakness over the last several days, traders are still seeing strong incentives to send LNG cargoes eastward.