Natural gas price ranges for oil-indexed supply, Q1/Q3 2020, current spot prices, and US LNG economics, Q1 2020

Notes

Oil-indexed prices are a range based on contractual “slopes” that dictate the strength of the oil/gas price link. Prices in Q3 2020 assume Brent averages USD 25/bbl from March September 2020. Spot prices for Asia are an average of reported spot prices for LNG deliveries, and for Europe are the day-ahead prices quoted on the Netherlands’ Title Transfer Facility (TTF). The ranges for short-run costs of US LNG reflect the tolling model for LNG off-takers = Henry Hub price (range in Q1 2020) + 15% + shipping costs to Europe or Asia (excluding regasification). Long-run costs include the capital costs of the liquefaction facility.