JKM prices break above the oil-indexed range
Global LNG Hub Blog
by Editor
1d ago
JKM prices break above the oil-indexed range for the first time since mid-December last year, highlighting rapidly tightening market fundamentals ahead of the Asian cooling season. JKM prices rose by more than 60% since early March, driven by strong demand growth in Asia, tighter supply than expected and geopolitics adding to the nervousness of the market: (1) Asian demand: both China and India’s gas demand growth is back to double-digit growth, primarily supported by industry and higher gas burn in the power sector; (2) Sizzling heatwaves are adding to the overall gas/LNG demand: India’s gas ..read more
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Noticeable shifts in the destination of LNG sales
Global LNG Hub Blog
by Editor
4d ago
With LNG demand rising in Asia and falling in Europe, there have been some noticeable shifts in the destination of LNG sales. The U.S. remained the largest LNG exporter, with a total of 35.41 million tonnes (mt) sold internationally from January to May. This was down 0.2% year on year from 35.48 mt shipped over the same period in 2023. Australia followed with 33.79 mt in 2024, up 1.3% year on year from 33.37 mt. Qatar came third with 32.65 mt in January-May 2024, down 0.3% drop from 32.74 mt in 2023. U.S. LNG exports to Asia rose by around 41% year on year to 9.7 mt over the first five months ..read more
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Henry Hub breaks the $3/mmbtu mark
Global LNG Hub Blog
by Editor
4d ago
Henry Hub broke today the $3/mmbtu mark, for the first time since Storm Heather swept across the US early Jan this year. Henry Hub prices almost doubled since their March lows, when they dropped to near $1.5/mmbtu -a multidecade low for that period of the year. The key drivers behind this price rally are: (1) Production cuts: US dry gas output dropped by 3% yoy in recent weeks as upstreamers started to rationalise their production in the wake of the March/April price collapse; (2) Strong powgen demand: gas burn in the power sector was up by 6% yoy in May, supported by relatively low gas prices ..read more
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Review of natural gas and LNG price trends
Global LNG Hub Blog
by Editor
4d ago
The Northeast Asian assessed spot LNG price JKM for last week (3 June – 7 June) fell to high-USD 11s on 7 June from mid-USD 12s the previous weekend (31 May). In the beginning of the week, the price rose high-USD 12s due to supply concerns from the shutdown of Nyhamna gas plant in Norway on 2 June. After that, the price was downtrend due to restoring from its concerns and recoveries of the troubles of the Gorgon and Brunei LNG. METI announced on 5 June that Japan’s LNG inventories for power generation as of 2 June stood at 2.23 million tonnes, up 0.17 million tonnes from the previous week. The ..read more
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Freeport LNG sues contractors over motor defects
Global LNG Hub Blog
by Editor
1w ago
LNG feedgas demand is mostly unchanged from Friday at 13 Bcf/d, with reduced inflows to several terminals offset by an increase at Cameron LNG. We had previously reported on Golden Pass’ lead contractor Zachry filing for bankruptcy; now, Freeport LNG is suing Zachry as well as Chiyoda, and McDermott over defects in electric motors at its terminal. The lawsuit cites an electrical short from loose hardware in Train 3’s motor as the direct cause of the outage, leading to further inspections and repairs across the facility. Freeport found similar issues in other motors and additional workmanship f ..read more
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Review of natural gas and LNG price trends
Global LNG Hub Blog
by Editor
2w ago
The Northeast Asian assessed spot LNG price JKM for last week (27 May – 31 May) increased to low-USD 12s on 24 May from mid-USD 12s the previous weekend (24 May). The price continued its upward trend due to increased demand in Asia for the summer season and increased electricity demand due to the heat wave in India, as well as continued supply uncertainties such as troubles at Gorgon PJ. METI announced on 29 May that Japan’s LNG inventories for power generation as of 26 May stood at 2.06 million tonnes, down 0.20 million tonnes from the previous week. The European gas price TTF for last week a ..read more
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U.S. companies bullish on gas demand driven by AI & data centres
Global LNG Hub Blog
by Editor
2w ago
US earnings calls were broadly dominated by two key topics in Q1: (1) the forthcoming LNG wave and need for feedgas; (2) the gas demand surge stemming from data centers/AI and a bit of crypto mining on the margin. Data centers and AI are now expected to drive a more rapid electricity demand growth than previously foreseen, and this additional electricity supply needs to be stable and hence could provide some additional upside for gas burn in the power sector. The key question is how much additional gas demand? While for incremental LNG feedgas the maths are pretty straightforward, forecasting ..read more
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Qatar’s role in LNG supply to Europe
Global LNG Hub Blog
by Editor
2w ago
LNG now accounts for 40% of the European Union’s gas imports from alternative sources and suppliers. Last year Qatar remained Europe’s second largest LNG suppliers. The country supplied 14%. In 2023, Qatar exported 79.8 million tonnes of LNG, of which 15.1 million tonnes (19%) were delivered to Europe, almost exclusively via the Suez Canal. Over the 60 weeks from the week beginning January 2, 2023, to the week beginning February 19, 2024, Qatari LNG exports range between 1.19 and 1.82 million tonnes, with an average of 1.54 million tonnes, which can be considered a “normal” level of Qatari LNG ..read more
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Alaska LNG sees more legal mire
Global LNG Hub Blog
by Editor
2w ago
Environmental groups have filed new litigation in the US Court of Appeals for the 9th Circuit against the $38.7 billion, 20 million mt/year Alaska LNG project, challenging the federal evaluation of impacts on several threatened and endangered species. This follows a climate-related lawsuit by young Alaskans and pending litigation in the US Court of Appeals for the DC Circuit against the US Department of Energy’s export authorization. The Alaska LNG project aims to connect North Slope supplies via an 806-mile pipeline to an export terminal in southern Alaska. The project promises a shorter ship ..read more
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Natural gas price benchmarks: stronger gas prices across all key markets in May.
Global LNG Hub Blog
by Editor
2w ago
Tighter fundamentals and geopolitical uncertainties strengthened gas prices across all key markets in May. In the US, Henry Hub prices surged by more than 30% compared to April to an average of $2.15/mmbtu. productions cuts (-3% yoy), together with a continued strong increase in gas-fired generation (up by 5.5%) provided upward pressure on prices. And while $2.2/mmbtu is certainly a relief compared to the price slump through Feb-Apr, we are still below the average production cost of most US upstreamers. In Europe, TTF prices rose by 10% month-on-month to average at $10/mmbtu. while storage lev ..read more
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