LNG

North Sea Brent crude oil prices rose to their highest level in seven-and-a-half years as European natural gas and LNG cargo prices gained 20 percent after Russia said it was taking military action in neighbouring majority ethnic-Russian areas of Ukraine.

Nov 30 (LNGJ) - The UK will receive its second December liquefied natural gas cargo from the US when the vessel “British Listener” with 173,640 cubic metres capacity berths on December 6 at the South Hook import terminal in Wales with a shipment from the Freeport plant in Texas, according to port authorities.

   The shipment was heading for UK shores as the nation’s National Balancing Point (NBP) benchmark natural gas price was last at around $32 per million British thermal units.

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.

Some of the steam has run out of the global LNG price surge as natural gas benchmarks dropped by 12 percent and more across the board for Europe and North Asia while remaining at sky-high seasonal levels as LNG cargo liftings were stable.

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.

July 12 (LNGJ) - The 260,930 cubic metres capacity Q-Max LNG carrier “Umm Slal” is scheduled to deliver a cargo on July 18 to the UK South Hook import terminal at Milford Haven in Wales from the Ras Laffan plant in Qatar.

The shipment, lifted on June 27, is arriving in the UK as the National Balancing Point (NBP) natural gas price was at the equivalent of $12.50 per million British thermal units, just short of the 2021 summer season high of $12.90 per MMBtu.

Global natural gas demand is expected to rise by 3.6 percent in 2021 before easing to an average growth rate of 1.7 percent over the following three years, though by 2024 demand is forecast to be up 7 percent from 2019 pre-Covid-19 levels, according to the latest quarterly Gas Market Report from the Paris-based International Energy Agency.

The Intercontinental Exchange, the US-based operator of global trading platforms and clearing houses, reported record activity across its markets for European Dutch Title Transfer Facility (TTF) futures and Japan-Korea Marker futures for North Asia spot cargoes.

Global pricing agency Platts said the Japan-Korea Marker (JKM) price for liquefied natural gas assessed by the US firm rose to a record high of $20.705 per million British thermal units

Asian spot LNG prices are riding at six-year highs, as a cold spell in some countries in North Asia prompted record imports into the region.

While Platts reported the temporary record $20.705 trading level, though the February settled prices were still generally at around $15.550 per MMBtu.

The March price was at $9.550 per MMBtu and April was quoted at $6.500 per MMBtu.

Analysts said demand from Japan has pushed up North Asia spot cargo prices.

Jera Co. Inc., Japan’s biggest power generator and the world’s largest buyer of LNG, as well as other Japanese electricity and gas companies, are competing with LNG buyers in China and South Korea to secure supplies.

Platts said that the situation also meant that fewer cargoes were coming to Europe than is usual for this time of year.

The UK National Balancing Point benchmark gas price had been firm over the past week though has now fallen under $7.00 per MMBtu.

The NBP was last at $6.95 per million British thermal units while the continental European Dutch Title Transfer facility (TTF) price was lower at the equivalent of $6.35 per MMBtu.

“A major demand stimulus for the recent price increase was the cold snap across northeast Asia which has boosted gas consumption and accelerated drastic inventory draw-down in Japan, South Korea and China,” explained Platts.

“On the supply-side, production issues in countries such as Malaysia have depleted availability and led to delayed or deferred deliveries of LNG, as well as reduced volumes stipulated under long-term contracts,” it added.

US Gulf Coast LNG prices were lower. The February derivative contracts for FOB cargoes has declined to $5113 per MMBtu from
$6.400 per MMBtu.

The March price also fell back on the week to $4.883 per MMBtu from $5.929 per MMBtu. The April GCL price was from $4.532 per MMBtu.

Additionally, there have been shipping traffic constraints in the Panama Canal, meaning vessels carrying shipments from the US Gulf Coast have experienced longer shipping times into the Pacific region.

“This has meant more cargoes are expected in Asia in the later weeks of February or in March,” stated Platts.

Platts said it forecast a drop in Asia-Pacific demand through the first quarter. Even if some supply outages continue through March, prices were likely to decline.

Global cargo liftings of liquefied natural gas declined after four weeks of increases, but North Asia spot LNG prices broke through the $10.00 per million British thermal units level and North Sea Brent crude cleared $51 a barrel amid concerns about future US energy policies, reflected in higher Gulf Coast LNG futures prices.