As shown in today's Mid-Week Macro- Current LNG prices for today, Mar. 4, 2026:
$ 2.94, Henry Hub, Pepperstone
EUR 32.09, Wisdomtree (up 53% for the week)
And Qatar has declared force majeure; no LNG production.
There's roughly an order of magnitude difference between the U.S. price and the Euro price. This is a shocker. Again the reality that a real was is going on.
Looks kind of like the recent difference in price of silver in the CME compared to Shanghai, only this difference is much bigger.
Mea culpa: Apparently, the European prices for LNG are given in MWh whereas the U.S. (Henry Hub) prices for LNG are given in MMBtu . I my comment of Mar. 4, 2026, I did not take this into account.
"The energy in megawatt-hours is equal to the energy in million BTU multiplied by 0.293071."
So, the energy in 3 MWh is approximately equal to the energy in 1 MMBtu. NOTE: We are in fact comparing units of electricity produced or used, in a unit of time; to a measure of heat energy- so, apples to oranges. Kind of.
Then, we would convert price in Euros to price in US$. (Today, 1 Euro to about $ 1.16 US$ )
I think we need someone who arbitrages LNG from one system to another to help us out here. Emphatic remarks on the complexity of this marketplace are welcome. LOL, and again I am sorry. A trader might be able to tell us whether this sort of trade comes into play. I did come across remarks that LNG arbitrage ought to come into play given the cessation of supply of LNG from Qatar.
As shown in today's Mid-Week Macro- Current LNG prices for today, Mar. 4, 2026:
$ 2.94, Henry Hub, Pepperstone
EUR 32.09, Wisdomtree (up 53% for the week)
And Qatar has declared force majeure; no LNG production.
There's roughly an order of magnitude difference between the U.S. price and the Euro price. This is a shocker. Again the reality that a real was is going on.
Looks kind of like the recent difference in price of silver in the CME compared to Shanghai, only this difference is much bigger.
Just how it looks to me.
Mea culpa: Apparently, the European prices for LNG are given in MWh whereas the U.S. (Henry Hub) prices for LNG are given in MMBtu . I my comment of Mar. 4, 2026, I did not take this into account.
From inchcalculator.com:
"The energy in megawatt-hours is equal to the energy in million BTU multiplied by 0.293071."
So, the energy in 3 MWh is approximately equal to the energy in 1 MMBtu. NOTE: We are in fact comparing units of electricity produced or used, in a unit of time; to a measure of heat energy- so, apples to oranges. Kind of.
Then, we would convert price in Euros to price in US$. (Today, 1 Euro to about $ 1.16 US$ )
I think we need someone who arbitrages LNG from one system to another to help us out here. Emphatic remarks on the complexity of this marketplace are welcome. LOL, and again I am sorry. A trader might be able to tell us whether this sort of trade comes into play. I did come across remarks that LNG arbitrage ought to come into play given the cessation of supply of LNG from Qatar.
I agree with this sentiment Janice! Thank you for sharing and summarising!