European LNG sendout plummets

While soaring TTF prices have had the desired impact on the power generation stack in Europe, reducing demand from coal to gas switching, they have not had a similar impact on increasing share of LNG imports. High Asian demand in peak summer has instead seen JKM maintain a sufficient premium to attract marginal LNG supply away from Europe (with cargoes changing hands above 16 $/mmbtu), seeing July sendout in the North West European sink drop by over 70% from May to lows not seen since 2018, and 30% below 2020 levels heavily influenced by tank-top fears and US LNG shut ins.