Jun 12, 2025
Spanish LNG re-exports are expected to decline in June due to an increase in domestic demand.
At the beginning of summer, LNG re-exports from Spain rose year-on-year due to favorable gas prices, but traders anticipate this trend will decline in June due to growing local demand.
Data from S&P Global Commodity Insights shows that 11 LNG cargoes were re-exported from Spain in April and May, up from three during the same timeframe last year but below the 14 cargoes shipped in 2023.
Spain was the primary hub for re-exports in April, with seven cargoes departing that month. In May, four cargoes were reloaded, matching the volume from Finland's Inkoo. Most re-exports went to Italy and Gibraltar, each receiving five cargoes over the two months.
The Spanish PVB month-ahead contract averaged Eur1.25/MWh higher than Med LNG prices but Eur3.80/MWh lower than the Italian PSV in May, according to Commodity Insights.
However, as hydro stocks fell and demand for gas increased, particularly in the power sector, the PVB day-ahead discount to the TTF benchmark tightened to nearly 30 euro cents/MWh, limiting re-export potential in June, market participants noted.
A gas trader in Spain stated, "In May, re-exports were higher because Spain had the lowest prices, but that has changed as PVB is nearly equal to TTF. May was mild with cool weather, but with rising temperatures and decreasing hydro stocks, I expect fewer re-exports from Spain in June."
The gap between Med LNG prices and Spain's TVB, the price for LNG at Spanish regasification plants, has decreased throughout the month. In May, there were reports of optimized bookings on the Spanish TVB due to its competitive pricing compared to LNG, but this advantage seems to have waned.
Platts reported, for the first time on June 9, Spain's TVB H2 June price at Eur34.025/MWh and again on June 10 at Eur33.145/MWh, reflecting a premium of nearly 27.5 euro cents/MWh over the equivalent Med LNG contract and Eur1.595/MWh lower than the July Dutch TTF.
On June 10, the July TVB contract was valued at Eur33.37/MWh, showing a discount of Eur1.37/MWh and 99.5 euro cents/MWh compared to the Dutch TTF and Spanish PVB, respectively.
Overall, LNG imports to Spain reached 2.95 million mt in April and May, a 31% increase compared to the same period last year, according to Commodity Insights. So far in June, Spain has received 601,000 mt of LNG, down 9% from the first 10 days of last month, but up 86% year-on-year.
Despite higher imports, storage levels remain below last year's figures, with Spanish inventories at 73.2% full as of June 9, compared to 90.4% a year earlier, according to Gas Infrastructure Europe.
In the EU, despite increased LNG imports, there are calls for higher injection rates to meet mandatory storage targets. It remains uncertain if the EU will formally ease these storage targets, as discussions are ongoing regarding the Commission's proposals. Currently, the goal of reaching 90% capacity by November 1 is still in effect.
Spain regularly re-exports LNG, but the transshipment of Russian LNG to non-EU ports is now prohibited.
The EU's ban on Russian LNG transshipment, effective March 26, aims to limit Russian LNG exports but may inadvertently boost Russian LNG volumes in the EU at the expense of deliveries to Asia. This ban, part of the EU's 14th sanctions package, forbids reloading Russian cargoes at EU ports for export to other countries.
So far, the Belgian port of Zeebrugge and the French port of Montoir have facilitated the transshipment of Russian LNG from the 17.4 million mt/year Yamal LNG facility. The EU has not completely banned Russian LNG imports, allowing Russian cargoes to unload LNG at EU ports, but the gas must either be consumed or transshipped within the bloc.
Data from S&P Global Commodity Insights shows that 11 LNG cargoes were re-exported from Spain in April and May, up from three during the same timeframe last year but below the 14 cargoes shipped in 2023.
Spain was the primary hub for re-exports in April, with seven cargoes departing that month. In May, four cargoes were reloaded, matching the volume from Finland's Inkoo. Most re-exports went to Italy and Gibraltar, each receiving five cargoes over the two months.
The Spanish PVB month-ahead contract averaged Eur1.25/MWh higher than Med LNG prices but Eur3.80/MWh lower than the Italian PSV in May, according to Commodity Insights.
However, as hydro stocks fell and demand for gas increased, particularly in the power sector, the PVB day-ahead discount to the TTF benchmark tightened to nearly 30 euro cents/MWh, limiting re-export potential in June, market participants noted.
A gas trader in Spain stated, "In May, re-exports were higher because Spain had the lowest prices, but that has changed as PVB is nearly equal to TTF. May was mild with cool weather, but with rising temperatures and decreasing hydro stocks, I expect fewer re-exports from Spain in June."
The gap between Med LNG prices and Spain's TVB, the price for LNG at Spanish regasification plants, has decreased throughout the month. In May, there were reports of optimized bookings on the Spanish TVB due to its competitive pricing compared to LNG, but this advantage seems to have waned.
Platts reported, for the first time on June 9, Spain's TVB H2 June price at Eur34.025/MWh and again on June 10 at Eur33.145/MWh, reflecting a premium of nearly 27.5 euro cents/MWh over the equivalent Med LNG contract and Eur1.595/MWh lower than the July Dutch TTF.
On June 10, the July TVB contract was valued at Eur33.37/MWh, showing a discount of Eur1.37/MWh and 99.5 euro cents/MWh compared to the Dutch TTF and Spanish PVB, respectively.
Overall, LNG imports to Spain reached 2.95 million mt in April and May, a 31% increase compared to the same period last year, according to Commodity Insights. So far in June, Spain has received 601,000 mt of LNG, down 9% from the first 10 days of last month, but up 86% year-on-year.
Despite higher imports, storage levels remain below last year's figures, with Spanish inventories at 73.2% full as of June 9, compared to 90.4% a year earlier, according to Gas Infrastructure Europe.
In the EU, despite increased LNG imports, there are calls for higher injection rates to meet mandatory storage targets. It remains uncertain if the EU will formally ease these storage targets, as discussions are ongoing regarding the Commission's proposals. Currently, the goal of reaching 90% capacity by November 1 is still in effect.
Spain regularly re-exports LNG, but the transshipment of Russian LNG to non-EU ports is now prohibited.
The EU's ban on Russian LNG transshipment, effective March 26, aims to limit Russian LNG exports but may inadvertently boost Russian LNG volumes in the EU at the expense of deliveries to Asia. This ban, part of the EU's 14th sanctions package, forbids reloading Russian cargoes at EU ports for export to other countries.
So far, the Belgian port of Zeebrugge and the French port of Montoir have facilitated the transshipment of Russian LNG from the 17.4 million mt/year Yamal LNG facility. The EU has not completely banned Russian LNG imports, allowing Russian cargoes to unload LNG at EU ports, but the gas must either be consumed or transshipped within the bloc.