LNG

The Dutch Title Transfer Facility natural gas price has strengthened its position as the main continental European day-ahead and month-ahead gas trading instrument, widening its lead over the UK National Balancing Point price and with both prices followed in volume terms by German and Italian virtual hubs.

Natural gas trading through London in the popular European Dutch TTF, rose by 34.17 percent in March compared with a year ago while trading in the day-ahead UK benchmark NBP was down by 7.42 percent year-on-year.

The Dutch TTF and UK NBP prices are also the main indicators used when pricing Atlantic Basin LNG cargo trades.

Germany’s two day-ahead trading hubs were among the next three in volume terms, though separated by Italy, while the French PEG hub came sixth in the volumes list.

The Dutch TTF logged 2,723,912,634 megawatt hours of over-the-counter bilateral and cleared monthly trades, a rise of 12.61 percent over February 2019 and a 37.14 percent increase year-on-year from March 2018, according to the figures from the London Energy Brokers’ Association.

The London body is the industry association representing the UK Financial Conduct Authority-regulated wholesale market brokers in the OTC and exchange-traded European energy markets.

Figures also showed that the average day-ahead Dutch TTF price was 15.69 euros per megawatt hour ($5.17 per million British thermal units equivalent) in March 2019 versus 23.23 euros per MWh in March 2018, a price fall of 32.46 percent.

The UK NBP had 616,189,691 megawatt hours of bilateral and cleared OTC trades in March, a month-on-month rise of 17.17 percent, though the number was down 7.42 percent compared with March 2018.

The average NBP day-ahead price was 39.48 pence per therm ($5.15 per MMBtu) compared with 63.15 pence per therm in March 2018, a drop of 37.48 percent.

The other March OTC trading totals logged by London for European natural gas were:

NetConnect Germany (NCG) virtual trading point day-ahead volume 188,367,429 MWh; Italian Punto di Scambio Virtuale (PSV) 179,156,300 MWh; German Gaspool 120,795,08 MWh; France PEG 64,808,928 MWh; Austrian VTP 63,791,943 MWh; and Zeebrugge Hub 51,548,595 MWh.

The other European day-ahead gas hubs traded 26,502,029 MWh of contracts.

July 19 (LNGJ) - The 266,000 cubic metres capacity Q-Max carrier “Bu Samra” will unload a cargo on July 26 at the UK Milford Haven import terminal in Wales from the Ras Laffan plant in Qatar, according to the Port Authority. The delivery was heading for the UK as the National Balancing Point benchmark natural gas price was at the equivalent of $7.60 per million British thermal units, while one of the main continental European prices, the Dutch Title Transfer Facility (TTF), was slightly lower at the equivalent of $7.55 per MMBtu.

May 19 (LNGJ) - The 266,000 cubic metres capacity Q-Max vessel “Bu Samra” is scheduled to deliver a cargo on May 25 to the UK South Hook import terminal in Milford Haven in Wales, the port authority said. The delivery was fixed as the UK National Balancing Point benchmark natural gas price was last at the equivalent of $5.20 per million British thermal units, while one of the main continental European prices, the Dutch Title Transfer Facility (TTF), was quoted at around $4.95 per MMBtu.

March 31 (LNGJ) - The 210,100 cubic metres capacity Q-Flex vessel “Al Ghariya” is scheduled to unload a cargo on April 8 at the UK South Hook import terminal in Milford Haven in Wales, the second April shipment to the facility. The deliveries of LNG to Europe’s largest natural gas market come at a time when prices are under $5 per million British thermal units. The UK National Balancing Point price was last at the equivalent of $4.95 per MMBtu while one of the main continental European prices, the Dutch Title Transfer Facility (TTF), was quoted at around $4.65 per MMBtu.

Mar 27 (LNGJ) - The 266,000 cubic metres capacity Q-Max carrier “Rasheeda” will deliver the first April cargo to the UK. The vessel will unload the shipment from Qatargas on April 2 at the South Hook import terminal at Milford Haven in Wales, according to port authorities. The delivery comes at a time when benchmark UK National Balancing Point natural gas prices have dropped to their lowest of the year, the equivalent of $4.85 per million British thermal units while one of the main continental European prices, the Dutch Title Transfer Facility (TTF), was quoted at around $4.45 per MMBtu.

Norway held its position as the third-largest exporter of natural gas in the world last year after Russia and Qatar and continued to ship LNG cargoes to both Northwest Europe and the Mediterranean region, according to the latest survey of the Norwegian energy industry by the US Government.

National Grid, the UK natural gas system operator and LNG terminal owner, has just published its “Gas Ten Year Statement”, giving details of latest capacities and updates on projects under development.

Nov 7 (LNGJ) - Chevron Corp. said it had started production at the Alder natural gas field in the UK sector of the North Sea. The project will eventually produce 110 million cubic feet of natural gas and 14,000 barrels of condensate per day. “First gas at Alder represents a significant milestone for Chevron and highlights our commitment to investing and developing resources in the UK,” said Greta Lydecker, Managing Director of Chevron Upstream Europe. “The safe and successful completion of this project was underpinned by strong collaboration between Chevron and Alder co-venturer ConocoPhillips. Alder supports our goal of helping maximize the economic recovery of the UK,” stated Lydecker.

Oct 7 (LNGJ) - The UK is keeping up its liquefied natural gas import ratios as natural gas consumption for gas-fired power generation has increased in 2016 as more coal-fired power plants have been replaced. Natural gas power burn increased by 43 percent in the first nine months compared with the same period last year and was 37 percent higher than the average for the previous three years, according to official figures. Coal generation accounted for 23 percent of the total electricity generated in the UK. The country recently commissioned its latest gas-fired power plant, the 880-megawatt Carrington facility in Manchester.

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.