Greater options to manage LNG price risk emerge after natural gas market turmoil

The LNG industry is addressing the basis risk between European LNG and pipeline gas by using the first LNG-settled derivative for Northwest Europe, called NWM, which provides a like-for-like hedge for European-delivered LNG cargoes.

spglobal.com

Relevant topic timeline:

8/30/2023

EU purchases of Russian LNG up 40% compared to pre-war levels: study

The European Union's purchases of Russian liquefied natural gas (LNG) have surged despite their vow to reduce imports over Russia's invasion of Ukraine, raising questions about their efforts to weaken Russia's war chest.

9/12/2023

Gas Prices Face Volatility This Winter Amid Australian Strikes and Uncertainty Over Russian Supply

European gas markets are expected to experience more volatility and higher prices as preparations for the winter heating season are underway, with disruptions caused by strikes at major liquefied natural gas (LNG) facilities in Australia leading to increased competition for LNG from other suppliers in Asia and Europe.