Gas prices in North America remained at multi-decades lows in April, while European and Asian spot prices strengthened amidst geopolitical tensions and outages. In the US, Henry Hub prices fell by 25% yoy to an average of $1.6/mmbtu -their lowest April average since 1995. high storage levels (37% above 5y average), together with lower LNG exports put downward pressure on prices despite lower domestic production (-1.5%) and higher gas burn in the power sector (up by 6% yoy). In the Permian, Waha gas prices collapsed to an average of -$1.3/mmbtu -their lowest monthly average on record. strong as ..read more

The Northeast Asian assessed spot LNG price JKM for the previous week (15 April – 19 April) increased to high-USD 10s on 19 April from low-USD 10s the previous weekend. In the first half of the week, the price surged to low-USD 11s on April 16 due to escalating tensions in the Middle East and supply risks such as the shutdown of Freeport LNG train 3 in the US and unplanned maintenance at the Nyhamna gas processing plant in Norway. The price remained at 10s through the latter half of the week, despite ongoing tensions in the Middle East, due in part to weak demand in Asia. METI announced on 17 ..read more

Venture Global LNG Inc. is on track to potentially introduce feed gas to its Plaquemines LNG project by year-end, as it awaits FERC’s approval to begin using a segment of its Gator Express pipeline. This pipeline, crucial for connecting to the Texas Eastern Transmission pipeline system, would facilitate the delivery of nearly 2 Bcf/d to the Plaquemines facility. Despite delays in Phase I of the pipeline, construction on Phase II has completed, and if approved, could see the equipment operational within the week. The project is projected to add a significant amount of LNG takeaway capacity. Pro ..read more

Despite the European Parliament vote to ban the imports of Russian LNG and calls on Ukraine NOT to renew the gas contract with Russia to send Russian gas through Ukraine to Europe, we believe that the top European LNG importers (France, Spain and Belgium) will not ban Russian LNG. They import significant volumes from Russia that cannot be replaced by imports from other countries. Should these countries decide to ban the imports of LNG without any loopholes, it will not only lead to higher gas prices in Europe, but also to higher dependence on coal and change in global direction of LNG trade. S ..read more

The Northeast Asian assessed spot LNG price JKM for the previous week (8 April – 12 April) increased to mid-USD 10s on 12 April from mid-USD 9s the previous weekend. The price trended upper on the back of buying interest toward June and rising geopolitical tensions by Russian attacks on Ukrainian storage sites 11 April. METI announced on 10 April that Japan’s LNG inventories for power generation as of 7 April stood at 1.60 million tonnes, up 0.12 million tonnes from the previous week. The European gas price TTF increased to USD 9.6/MBtu on 12 April from USD 8.5/MBtu the previous weekend. The p ..read more

The Northeast Asian assessed spot LNG price JKM for the previous week (1 April – 5 April) remained unchanged at mid-USD 9s on 5 April from mid-USD 9s the previous weekend. The price trended lower mid-week on the back of weak demand in major LNG consuming countries in Asia, but the decline was offset over the weekend by active trading due to demand for inventory injections, especially in Japan. METI announced on 3 April that Japan’s LNG inventories for power generation as of 31 March stood at 1.48 million tonnes, down 0.04 million tonnes from the previous week, down 0.85 million tonnes from the ..read more

In the red corner is a large new wave of LNG supply, backed predominantly by North American & Qatari gas. In the blue corner is Asian LNG demand growth, backed by two giants (India & China) as well as a range of high growth developing economies (e.g. Vietnam, Thailand & Pakistan). In this article, Timera Energy previews the approaching battle, as well as checking in on the market set up in 2024. Current market state of play The European gas market remains the anchor for Atlantic & Pacific basin LNG prices. Asian prices (e.g. JKM) trade at a premium to European hubs (e.g. TTF ..read more

The Northeast Asian assessed spot LNG price JKM for the previous week (18 March – 22 March) rose to nearly USD 10 on 18 March from USD 9 the previous week due to a cyclone in Australia and trouble at a liquefaction facility in the U.S. However, it dropped to USD 9 on 22 March amid sluggish demands and declined buying interests due to price hikes since then. METI announced on 21 March that Japan’s LNG inventories for power generation as of 17 March stood at 1.60 million tonnes, down 0.11 million tonnes from the previous week. The European gas price TTF rose to USD 9.2 on 18 March from USD 8.6 t ..read more

Waha gas prices in the Permian spent most of their time in March in negative territory, with prices averaging at -0.2/mmbtu, their lowest monthly average since May19. So what is driving this? (1) Strong associated gas production: higher oil prices are supporting oil production growth in the Permian, which in turn drives associated gas production from more gassy fields. gas production in the Permian rose by more than 10% yoy in Q1 2024; (2) Pipeline constraints from the Permian, as takeaway capacity is being limited by maintenance, including on the El Paso pipeline; (3) Weak US gas demand: unse ..read more

The unwinding of Japan’s LNG imports that increased since Fukushima nuclear accident will have a ripple effect throughout the global LNG market, especially in Asia. The main impact is that the increase in demand that took place since the Fukushima accident will not be there. The government reversed its policy on nuclear and is now returning nuclear reactors to service. Analysts assumed that the shift to LNG after Fukushima was permanent, but now everything is being reversed. The unwinding of LNG imports will add to the global glut as LNG supplies increase from the US and Qatar and put downward ..read more