8JUN

EU LNG terminals drew 163kt in three days

2 min read

10:46UTC

Terminal stocks funded the marginal molecule into pipeline storage as Atlantic cargoes kept missing the basin.

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Key takeaway

Terminal stocks are now the marginal supplier; the buffer is finite and shrinking.

Gas Infrastructure Europe's ALSI (Aggregated LNG Storage Inventory, the terminal-stocks companion to AGSI+) showed aggregate EU terminal inventory falling from 5,929 thousand tonnes on 10 April to 5,766 thousand tonnes on 13 April, a draw of 163 kt over three days ¹. Daily send-out averaged 4,348 GWh, with no evident new cargo arrivals landing in the window.

Around a dozen Atlantic LNG cargoes had already diverted to Asia since early March , compressing the JKM-TTF spread to near parity and removing the arbitrage that would ordinarily pull reload cargoes back into European terminals. QatarEnergy's Ras Laffan force majeure takes out the other direction of flexible supply. With Atlantic inflow thin and Qatari inflow blocked, terminal buffer is the only variable left, and it is being drawn at roughly 50 kt per day to keep pipeline send-out steady.

That dynamic has a short runway. ALSI carries finite stock, and drawing it during peak reload season means Europe enters May with a thinner LNG cushion against any late-April supply shock. With the Russian LNG cutoff arriving on 25 April and no replacement supply publicly named, the buffer question becomes a May question rather than a June one.

Deep Analysis

In plain English

LNG, liquefied natural gas, arrives at European ports as a super-cooled liquid in specialised tankers. It is stored at coastal terminals before being sent inland through pipelines as regular gas. Think of the terminals as the first link in the chain between ships arriving from Qatar, the US, or Nigeria, and the heating systems of European homes. Between 10 and 13 April, EU terminals collectively drew down their stocks by 163,000 tonnes in three days, and no new tankers appear to have docked to refill them. That is because LNG ships have been diverting from Europe to Asia, where buyers are paying slightly more. European terminals were funding their pipeline obligations by drawing on reserves, not new deliveries.

What could happen next?

Risk
The Russian LNG ban on 25 April removes a portion of the terminal replenishment flow while injection season demand for send-out rises, accelerating the terminal drawdown rate beyond the current 54 kt/day.

Source Landscape

This story draws on neutral-leaning sources

At 4,348 GWh/day send-out and 5,766 kt inventory, EU terminals hold approximately 8.4 days of buffer. A 163 kt three-day drawdown represents a daily depletion rate of 54 kt without replacement. At that rate, terminals would fall below operational minimums (roughly 3,000 kt) in approximately 52 days if no new cargoes arrived, which is implausible but illustrates the directional pressure.

The structural constraint is the JKM-TTF spread: at USD 0.10/MMBtu parity, no flexible cargo operator has a price incentive to choose Europe over Asia. A EUR 42/MWh TTF translates to roughly USD 15.4/MMBtu, while Japanese LNG spot was trading at approximately USD 15.5/MMBtu. The 10-cent spread is below the routing cost differential between Atlantic-to-Europe and Cape-of-Good-Hope-to-Japan, making Europe effectively uncompetitive for swing cargoes until TTF rises or Asian demand softens.

Consensus view: S&P Global Commodity Insights LNG analysts assess that a three-day terminal drawdown with no evident new cargo arrivals is the signature of a supply hiatus, not a demand surge. When the JKM-TTF spread narrowed to USD 0.10/MMBtu , US and Nigerian operators holding flexible cargoes diverted to Asia, where committed long-term offtakers were paying premiums to recover from Hormuz supply loss.

Counter-view: GIIGNL (the International Group of Liquefied Natural Gas Importers) notes that European terminal operators routinely hold 5-7 days of send-out buffer above operational minimums, and 5,766 kt represents roughly 8 days of current send-out. The terminal estate is not in distress; it is operating at the bottom of its working range.

Key tension: Whether the 8-day buffer is adequate once the Russian LNG ban removes approximately 17 bcm per year from 25 April, cutting the replenishment flow precisely when injection season demand for send-out is rising.

Sources:Gas Infrastructure Europe

Mentions:GIE ALSI →European Union →Liquefied Natural Gas →QatarEnergy →Qatar →TTF →JKM →Nigeria →Russia →Ras Laffan Industrial City →GIE AGSI+ →Gas Infrastructure Europe →Russian LNG short-term contract ban →

First Reported In

Update #2 · TTF EUR 42 as Russian LNG ban enters range

Gas Infrastructure Europe· 15 Apr 2026

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Causes and effects

This Event

EU LNG terminals drew 163kt in three days

Europe is eating its LNG savings to feed a pipeline system that has not yet flipped to injection.

Led to

Hormuz: 19 transits, no LNG; ALSI bounce was Atlantic

The ALSI terminal inventory on 25 April (5,071 kt) is 696 kt below the 13 April baseline tracked in ID:2423, confirming the Hormuz-driven drawdown continues.

Occurred 25 Apr 2026

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Different Perspectives

Energy Aspects (sell-side trading desk)

The freight market has priced the routing story more honestly than the flat price: Med Aframax bid hard, VLCC flat, distillate crack firming alongside crude, MR TC2 at a 7-month low. The positioning data (NYMEX WTI net short -26,694) confirms the 8 June Brent spike was a short-squeeze, not a conviction rally, with no long base to defend.

UK DESNZ / European refinery regulators

The UK's decision around 21 May to reopen the Russian-derived distillate import window self-destructs on the same 17 June GL 134C clock, meaning the policy reversal that gave European refiners a short-term margin relief is now contingent on OFAC issuing a successor licence. MR TC2 at $2,400/day shuts the transatlantic product arb, removing the US distillate fallback simultaneously.

Kuwait Petroleum Corporation

KPC's marketing chief told the S&P Global conference on 3 June that full output recovery requires 10-12 weeks after any Hormuz reopening, with Kuwait producing just 490kbd in May against pre-war levels. That timeline provides a hard floor under every ceasefire-rally price fade.

India downstream

India had structured an Oman supply deal specifically around the non-Hormuz Mina Al Fahal route; the 5 June drone strike eliminated that corridor and now puts Indian refiners at risk of losing Russian crude cover if GL 134C lapses without a successor on 17 June. Indian refiners are the primary off-take for Russian crude under the current waiver architecture.

China state refiners

Chinese crude imports fell again in the period covered, and Iranian Light flipped to a discount to Brent, sustaining the EFS-compression-is-a-China-demand-hole read from the prior briefing. Beijing has not moved to fill the seaborne gap, leaving the Brent-Dubai EFS as the live indicator of when Chinese buying returns.

US Treasury / State Department

Secretary of State Rubio broke the monthly GL-134 roll routine on 7 June by stating the US wants to end Russian oil waivers 'as soon as we possibly can', with no GL 134D announced ahead of the 17 June cliff. The simultaneous GL 131F clock on Lukoil-ISAB puts two European crude-supply constraints under the same fortnight of OFAC decision-making.