European and Asian natural gas prices continued moving higher last week and again finished strong on Monday as the regions competed for supplies.
Lingering cold in Europe, along with a drop in pipeline imports and a rise in the Japan-Korea Marker (JKM) contract, are supporting prices on the continent, where storage inventories remain about 25% below the five-year average. Below normal temperatures are expected to continue in the UK, France, Germany, Italy, Hungary, Poland, Scandinavia and the Balkans this week, while the 6-10 day period looks more normal, according to Maxar’s Weather Desk.
“All factors support the uptrend right now, as cold spring weather across Europe, supply concerns regarding Russia due to the relationship with Ukraine, and a surging carbon market all support the upturn,” said trading firm Energi Danmark in a Monday note. Day-ahead gas on the Dutch Title Transfer Facility (TTF) hub last week hit its highest level since January, while the front-year con
LNG market signals encourage the midstream [NGW Magazine]
Apr 20, 2021 7:30:am
Summary LNG prices have eased since the winter peaks but remain significantly above pre-winter levels, providing some relief for sellers after a lengthy period of market weakness. [NGW Magazine Volume 6, Issue 6]
by: Jeremy Bowden
Posted in:
LNG market signals encourage the midstream [NGW Magazine]
As the market emerges from winter, global LNG demand is looking robust, buoyed by the relaxation of Covid-19 restrictions, coal to gas switching and significant falls in domestic production seen in some importing countries.
Meanwhile, the price volatility of recent months could put buyers off reliance on spot supply and give a boost to longer term deals, which may help new LNG liquefaction plants get off the ground.
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Feed gas deliveries to U.S. liquefied natural gas (LNG) export terminals have been near capacity, flowing at almost 12 Bcf each day over the last week.
The European natural gas market is helping drive U.S. export demand. Prices on the continent closed higher last week. The Dutch Title Transfer Facility finished at $6.620/MMBtu and the UK’s National Balancing Point settled at $6.531 ahead of the Good Friday holiday.
European markets were closed for Easter Monday, but colder weather late last week along with strong natural gas demand being created by the need to replenish depleted storage stocks pushed prices higher.
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