LNG

European natural gas prices and US Gulf Coast last day futures for free-on-board cargoes from Louisiana and Texas increased for a second day after the Iranian drone and missile attacks on Israel brought more uncertainty and volatility into oil and gas markets.

European liquefied natural gas and wholesale pipeline gas prices dropped to their lowest level since June 2021 and reached parity with slowly rising North Asian spot cargo prices as the European Union increased storage volumes while demand declined on milder weather.

European natural gas market prices remained at a substantial premium to North Asia spot LNG values, which were now even lower than the UK National Balancing Point price for November as LNG demand was very high in Europe for early winter, while Asian countries appeared comfortable with their current flows and storage as coal remained an easy option there in colder weather.

Asian and European natural gas and LNG cargo market prices remain strong as liftings from global export plants declined slightly this week which is a year after the tremors began that led to the price explosion on perceived future natural gas shortages that proved correct.

Intercontinental Exchange, the leading global provider of trading platforms and clearing, said November average daily volumes of trade derivatives contracts surged for European natural gas and LNG as well as North Asia spot cargo contracts as well North Sea Brent crude oil trading also jumped.

The UK, the second-largest LNG importer in Europe and with an average of around 45 percent of gas-fired usage for power, has hosted its first emissions auction organised by the Intercontinental Exchange, the leading operator of global energy derivative exchanges and clearing houses.