LNG

The US government’s short-term energy report for May forecasts falling first-half 2024 dry natural gas production while liquefied natural gas exports are set to rise in 2025, along with the benchmark Henry Hub gas price.

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.

The latest US government energy report said the Henry Hub benchmark natural gas price from which the LNG price is derived is expected to increase to an average of $3.22 per million British thermal units in 2021 compared with last year’s average of $2.02 per MMBtu.

US production of natural gas dropped in February while LNG exports also plunged 23 percent because of the bad weather and navigational restrictions on the Gulf Coast during the month.

July 8 (LNGJ) - The US Henry Hub natural gas spot price averaged $1.63 per million British thermal units in June, the lowest inflation-adjusted price going back to at least 1989, as a result of low demand, the Energy Information Administration said in its short-term outlook. However, the EIA expects falling production will put upward pressure on natural gas prices through the end of 2021. It forecasts that Henry Hub spot prices will average $1.93 per MMBtu in 2020 and $3.10 per MMBtu in 2021.

Sept 21 (LNGJ) – US liquefied natural gas exports decreased by one shipment on the week to five cargoes, four from the Sabine Pass plant in Louisiana and one from Cove Point in Maryland. Three more carriers were lifting cargoes, two at Sabine and one at Cove Point. “Cove Point LNG facility received an LNG vessel on September 16, two days after the landfall of Hurricane Florence in North Carolina,” noted the weekly report from the Energy information Administration. US domestic natural gas prices rose with the benchmark Henry Hub spot price increasing 13 cents to $3.06 per million British thermal units, its highest since the end of January 2018 when prices averaged $3.21 per MMBtu. Other price increases were logged at the Chicago Citygate at $3.00 per MMBtu and at the Algonquin Citygate serving the Boston area where prices were 16 cents higher at $2.91 per MMBtu. Appalachian prices in shale-gas basins also rose, with the Tennessee Zone 4 Marcellus spot price up 36 cents to $2.55 per MMBtu.