Henry Hub prices present material arbitrage opportunity in Europe

Bloomberg reporting this morning that 30 Tankers of LNG are en route from the US to Europe.

The tankers contain a total of 4.9 million cubic meters of LNG, which if I've got my maths right is ~1bn therms / ~32TWh - valuing the cargo at more than £4bn.

The cost of processing and shipping the Henry Hub gas is likely ~55p-60p per therm, which at current prices would mean a profit of £3.3bn to £3.8bn for the cargo.

To put this in context - at current usage rates, this represents about 4 days inventory for this time of year in Europe.

Here's a slide showing the arbitrage value from a client presentation last week.