Spanish LNG reloads slumped in March, despite continued small-scale shipments to Italy, as a shrinking basis between the PVB and other European hubs limited opportunities for regional arbitrage.
Spanish reloads plummeted in March to just 84,000m³ of LNG, the lowest since 56,000m³ of LNG in October.
Spanish re-exports have been muted since the start of the year due to a narrowing price differential between Spain’s PVB and northern European hubs. Day-ahead prices on Spain’s Mibgas exchange were on average at parity with the TTF in March.
The Edison-chartered Ravenna Knutsen delivered two cargoes from the Enagas-operated Barcelona and Sagunto terminals to Italy’s mid-scale Panigaglia LNG import terminal and small-scale Ravenna terminal. Small-size cargoes to Italian terminals from Spain could continue this summer, filling the gap left by the closure of the LNG Toscana terminal.
Prevailing LNG prices make large-scale re-exports from Spanish terminals unlikely in the coming months. Enagas and Edison’s agreement aims to boost small-scale LNG deliveries in the Mediterranean.
Enagas last week announced plans to study adapting the El Musel LNG terminal to store and manage other gas molecules such as green hydrogen.
Despite challenges, Spain remains active in the LNG market with strategic partnerships and adaptations to meet changing energy needs.
