LNG

European natural gas entered backwardation as prices in Europe and Asia dropped to three-year lows even as demand increased as temperatures fell and gas storage levels registered large draws, while US and UK air raids on Yemen still failed to push oil over $80 a barrel.

CME Group, the US energy and commodities derivatives market leader comprising the York Mercantile Exchange and related platforms, has reached an agreement with Cheniere Energy to develop an LNG futures contract based on physical delivery to Cheniere's Sabine Pass liquefaction and export plant on the Gulf Coast of Louisiana.

The US Commodity Futures Trading Commission (CFTC) issued a report assessing the market impacts due to the US transitioning from being a net importer to a net exporter of liquefied natural gas.

Sept 22 (LNGJ) - The US benchmark Henry Hub natural gas spot price for next-day delivery surged to a one-year high of $3.14 per million British thermal units, up 6 cents from the previous day. The prices were being driven by higher than normal US seasonal temperatures. US natural gas futures on the New York Mercantile Exchange also traded higher, with the front-month quoted at $3.057 per MMBtu. In Europe, the UK National Balancing Point price rose as high as 35.19 pence per therm, or $4.60 per MMBtu.

Sept 2 (LNGJ) - The tropical storm and hurricane season in the Gulf of Mexico led to evacuations of personnel from offshore platforms and declines in US Gulf Coast natural gas production in the past week. It has also sent spot natural gas prices higher, with the benchmark Henry Hub price last at $2.92 per million British thermal units. Several producers, including Shell, BHP Billiton, Anadarko and BP evacuated personnel from offshore facilities as a precaution during the latest severe weather. The latest tropical disturbance is known as Hurricane Hermine and came ashore in the state of Florida on September 2.

July 5 (LNGJ) - US natural gas prices have exceeded 2015 levels for the first time and the Henry Hub benchmark could break the level of $3.00 per million British thermal units during July. Prices recently surged to $2.93 per MMBtu because of several supply interruptions in US southeast offshore natural gas production fields. Analysts said weather forecasts also indicate much warmer temperatures than normal until at least July 14, raising demand for gas-fired power for air conditioning.

June 10 (LNGJ) - European and US natural gas prices have risen with the recent oil surge, with the latest UK National Balancing Point benchmark price being the equivalent of $4.80 per million British thermal units compared with the US Henry Hub front-month futures price of $2.60 per MMBtu. The US natural gas price that reflects LNG export values has also risen because of forecast increases in summer US demand. “Heading into the summer cooling season, the New York Mercantile Exchange (Nymex) natural gas contract for July has markedly exceeded Henry Hub spot prices, likely reflecting expectations for summer natural gas consumption to increase substantially from current levels,” the US Energy Information Administration said.