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ROI-Tracking LNG flows as key global gas prices go haywire: Maguire

Natural gas prices in Europe and Asia have risen by?50% from the previous year's levels due to the sudden halt of LNG exports. Panicked buyers are now looking for replacement cargos.

Gas prices are likely to remain high for some time due to a lack of available vessels, as well as a limited amount of spare liquefaction capacities. Major LNG exporters are redirecting shipments to desperate buyers due to the high profit margins created by the rising gas prices in Asia, Europe and the Middle East.

This article provides a detailed breakdown of recent natural gas prices in key markets, which are likely to lead to further cargo divertions. It also includes the current LNG exports from key suppliers.

Profit-Primed Pricing

The U.S. exporters are most likely to benefit from the opportunities for redirection, since the U.S. is the largest global exporter and has the highest volumes of undeclared LNG capacity that can be shipped on a spot basis. Exporters from Australia, Russia and Malaysia, the next biggest LNG shippers according to Kpler, will also likely adjust their delivery schedules and locations following the sharp rise in natural gas prices across Asia and Europe.

LSEG data shows that the average price of LNG forward contracts to be delivered to major markets in Asia for 2026 is currently around $12.95 for a million British thermal unit (MMBtu). This represents a 53% increase compared to the average levels of 2025, and would be the highest average annual since 2022.

The benchmark TTF 2026 futures in Europe are currently averaging around $12.41 MMBtu. This is a 49% rise from the 2025 average.

Although these forward prices will likely change dramatically in the next few weeks as a result of market fluctuations, it's instructive to get a quick snapshot to evaluate potential arbitrage opportunities.

U.S. exporters could earn more than 200% profit even after accounting for liquefaction costs and shipping costs to Europe and Asia.

Due to the more opaque cost levels of gas and liquefaction, other exporters like Australia and Russia have a less clear profit potential.

As long as the gas prices in Europe and Asia remain at current levels, all LNG exporters can expect to make a historic profit if they are able to divert their cargoes towards these markets.

TRADE FLOW TRACKING

LNG analysts have already begun to closely monitor the shipment patterns of major LNG exporters in order to detect any sudden changes.

In 2025, the U.S. will ship 68% of its LNG into Europe. This is due to Europe's relatively low shipping costs.

The loading schedules of the first three month of this year show that U.S. Exporters increased shipments to Asian buyers by almost 20% in comparison to the same period 2025.

Kpler data shows that the tonnage of U.S. goods destined for Asia in the first quarter 2026 will be 3.75 million metric tonnes, up from 3.16 million for the same period last year. U.S. shipments from January to march are estimated at 22.7 millions tons, compared with 19.8 million for the same period last year.

Further increases in U.S. exports to Asia and Europe are expected as buyers of?LNG in these regions continue to bid strongly in the near- to medium-term.

Contrary to U.S. trade, the vast majority of Australian LNG exporters ship their products to Asia. In fact, over 95% Australian exports were made last year. The relatively?shorter transit times for cargoes to Asia, such as China and Japan, compared with cargoes sent from the United States, means that Australia maintains a price advantage over Asia buyers as well as more extensive relationships with regional buyers.

The Australian LNG sellers may not have much room to divert any of their shipments on the spot market, where buyers are willing to pay for delivery.

Other exporters, such as Russia, Malaysia, and Nigeria who have established global LNG routes, may be able to compete with their larger peers.

These are the opinions of the columnist, an author for.

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(source: Reuters)