LNG

Natural gas market prices and LNG cargo values declined in the Atlantic and Pacific Basins though stayed at substantial levels as the worldwide supply shortfall was marked this week by a lack of LNG tankers for charter and moderate cargo lifting levels at export plants.

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.

North Asian LNG prices declined for a fourth week as cargoes were on the water through to the end of November and European LNG cargo values dropped while UK gas prices were just $7.70 per million British thermal units higher than a year ago.

North Asia spot liquefied natural gas cargo prices increased while the European Union benchmark Dutch Title Transfer Facility price gained even more ground above $40 per million British thermal units as winter supply fears offset storage gains and a rise in liftings from global liquefaction plants.

Asian spot liquefied natural gas prices eased on the week with only March 2022 rising to underpin current value levels, while European benchmarks were slightly lower and cargo liftings from Atlantic and Pacific Basin plants continued to be at a balanced level.