July JKM-NWE spread widens as Asian LNG pull strengthens, European injections lag in General Energy News 06/05/2026 The July JKM-NWE derivatives spread widened in the last two weeks of April as prolonged risks to LNG flows via the Strait of Hormuz reinforced the pull toward Asia, while weak European storage economics continued to cap Northwest European gas prices. Platts, part of S&P Global Energy, assessed the spread at $1.940/million British thermal units at the April 30 London close, 11 cents/MMBtu higher from April 16 — the start of the June pricing period — reflecting expectations that Pacific basin demand could outpace European demand in the coming months. This compares with a narrower spread of 69.1 cents/MMBtu over the same period last year and $1.195/MMBtu in 2024. A wider JKM-NWE spread typically strengthens the pull for flexible Atlantic basin LNG cargoes into Asia. The Platts-assessed East-West arbitrage for US-sourced cargoes via the Cape of Good Hope reached an eight-week high of minus 30.5 cents/MMBtu on May 1, pointing to improved eastward arbitrage economics, according to Platts data. Northeast Asia-based LNG traders said the spread remains structurally supported by geopolitical risks, as a sustained disruption to Strait of Hormuz transits is likely to tighten supply into Asia, where Middle East volumes are heavily concentrated. At the same time, sentiment for Northeast Asian summer demand is gradually firming, particularly across weather-sensitive regions such as South China, according to several Asia-based traders and analysts. “The tone among Chinese buyers has shifted, from selling to trying to buy and secure supply for domestic needs,” a source familiar with the matter said, pointing to increased buying interest from southern regions. Additional supply-side risks are also emerging. In Australia, Offshore Alliance members on April 24 endorsed protected industrial action at the INPEX-operated Ichthys LNG facility, allowing strike action to be