LNG

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 US government has forecast average Henry Hub benchmark natural gas spot prices of $8.69 per million British thermal units in the third quarter as LNG exports rise 22 percent in 2002 with Europe being the main destination.

June 7 (LNG) - US natural gas futures have jumped to a 13-year high as very hot temperatures were forecast in the next week combined with lower gas field production levels and more LNG shipments. The front-month July New York Mercantile Exchange (Nymex) Henry Hub natural gas futures contract increased almost 10 percent on June 6.

   The Henry Hub prices for July hit $9.368 per million British thermal units while the August contract was quoted at $9.350. The Nymex price on June 7 was last at $9.49 per MMBtu. Analysts said the Nymex futures were also driven by rising LNG exports while natural gas output is falling short of forecasts.

US Natural gas futures on the New York Mercantile Exchange hit a 14-year high of almost $9.400 per million British thermal units amid optimism on future demand for LNG exports as Venture Global took a final investment decision on its Plaquemines LNG project on the banks of Mississippi River in Louisiana.

Prices remained strong in the liquefied natural gas spot cargo market as liftings from global export plants fell to their lowest level of 2022 and shipping charter rates jumped amid continued seasonally record high cargo values in Asia and Europe.

Global natural gas and LNG markets have been given further considerations to add to the mix of North Asian spot cargo prices and European gas values as the NYMEX Henry Hub jumped to $8.80 per million British thermal units on perceived very high future LNG demand from Germany to Guangdong.

Wholesale natural gas prices and futures in Europe and LNG values were locked in a steep trajectory as they soared by more than 76 percent on the week of Russia’s invasion of Ukraine amid worsening global energy and commodities supply concerns and with North Sea Brent staying over $100 a barrel to increase oil-linked long-term LNG values.

Liquefied natural gas prices jumped for the September delivery cycle for North Asia spot shipments along with the number of cargo liftings at global liquefaction plants as US front-month Henry Hub natural gas futures broke through the barrier of $4.000 per million British thermal units for first time in 2021.

Around 104 LNG shipments were being lifted this week versus 102 last week at global liquefaction plants as the US saw 16 cargoes departing from its facilities and the North Asia spot LNG price moved closer to the $7.00 mark for December shipments.

Around 102 LNG shipments were being lifted this week versus 91 last week at global liquefaction plants as the US saw 14 cargoes departing from its facilities and the North Asia spot LNG price moved above the $6.87 mark, while US and European natural gas benchmarks hit $2.98 per MMBtu and $5.65 per MMBtu respectively.