NATGAS: Spain’s PVB Gas Flips to Premium to TTF on Tighter Market

PVB gas front month has moved to a slight premium to the TTF equivalent at the start of April, Argus data showed, amid lower LNG supplies to Spain in March, while the NW European gas market fundamentals remained bearish with steady supplies.

• “It has more of a ‘just-in-time’ gas supply chain,” said Matt Drinkwater, Gas & Power Principal Consultant at Argus. In addition, the recent re-emergence of demand for LNG in the Pacific has “coincided with particularly weak deliveries to Spain in March.”
• “Refinery gas demand could strengthen further still in May after maintenance is concluded at some facilities,” he said.
• Spanish LNG sendout averaged 585.11mcm/d in March, below the five-year average of 638.34mcm/d according to GIE.
• Prior to Europe’s energy crisis in 2022, Spain’s PVB gas hub often traded at a premium to TTF due to its reliance on LNG supplies and limited UGS capacity.