Weaker spot LNG prices in Europe have supported increased buying interest for Algerian LNG cargoes, with traders expecting both LNG and gas outflows from Algeria to remain strong this month.
Algerian LNG exports have reached 1.1 million mt so far this month, putting deliveries from the country at the highest monthly level already since the 1.15 million mt exported in November, according to data from S&P Global Commodity Insights.
This represents a rise of 270,000 mt since the last update from the country on April 17.
Of the current exports, around 87% are to Europe, with the rest yet to be nominated.
On the pipeline side, exports from Algeria to Spain and Italy increased by 10% on the month between April 1-22 to a combined total of 2.2 Bcm, although they remained 7% lower on the year, data from S&P Global Commodity Insights showed.
Traders said that weak spot LNG prices have been supporting stronger buying interest.
Platts, a part of S&P Global Commodity Insights, assessed the DES Northwest Europe LNG Marker for June at $8.832/MMBtu April 23, down 21.3 cents/MMBtu on the day. The Mediterranean marker was assessed at a 5 cents/MMBtu discount to NWE.
Algeria has exported 4.16 million mt in 2024 so far, compared with 4 million mt in 2023 over the same period and the 3.30 million mt in 2022.
Spruce: Platts