Last month, the EU recorded its fourth consecutive year-on-year increase in gas consumption, rising by 9% to 40 bill cu m.
This came after seven months of continuous decline, reported the UAE-based Gas Exporting Countries’ Forum (GECF).
The rise was mainly driven by the residential and electricity sectors, influenced by a cold spell and notably lower wind power output.
Similarly, US gas consumption saw a significant y-o-y increase of 5.1%, reaching 93 bill cu m.
In November, 2024, China’s apparent gas demand rose by 1.7% y-o-y to 35.6 bill cu m, driven by increased LNG fuel demand for trucks and higher gas fired power generation.
As for gas production, in December, 2024, the US continued its declining trend to stand at 88.6 bill cu m, representing a 4.1% y-o-y reduction.
This drop reflected the combined effect of the Hurricane season on Gulf of Mexico operations and production cuts in response to low Henry Hub prices.
In November, 2024, Europe’s gas production fell by 2.1% y-o-y to reach 15.9 bill cu m, primarily due to reduced output from Norway and extended maintenance periods.
Gas production in the Asia/Pacific region was estimated to have decreased by 0.2% y-o-y, driven by a slower growth rate in Chinese production (3.7% y-o-y) and a reduction in output from several other major Asian gas producers.
In the upstream sector, GECF members, Mauritania and Senegal, began gas production from their joint Greater Tortue Ahmeyim (GTA) offshore project.
Global LNG imports fall
Looking at gas trades, in December, 2024, global LNG imports fell for the second consecutive month, declining by 0.3% y-o-y to 38.2 mill tonnes.
The decrease was driven by reduced imports in Asia/Pacific and Europe, partly offset by stronger inflows into the LAC and MENA regions.
Asia/Pacific LNG imports saw their only monthly y-o-y drop last year, attributed to mild winter weather, ample storage levels, and higher spot LNG prices.
Europe's LNG imports, although down y-o-y, reached their highest level since January, 2024, while PNG imports slightly increased to reach 13.7 bill cu m.
In terms of infrastructure development, the US Plaquemines LNG facility marked a milestone by exporting its first LNG cargo last month.
Gas stocks were falling in the northern hemisphere regions, driven by increasing heating demand.
The EU recorded a particularly large withdrawal, with the monthly average volume of gas in storage decreasing to 82 bill cu m (79% of the regional capacity), compared with 93 bill cu m a year ago.
Net US withdrawals started by the middle of November, bringing the average gas storage level down to 101 bill cu m (76% of the country’s capacity), almost the same level as a year ago.
In Asia, the combined volume of LNG in storage in Japan and South Korea decreased to 13.8 bill cu m, which is less than the 14.9 bill cu m in storage at the same stage last year.
European gas and LNG spot prices held steady compared to the previous month, while Asian LNG prices experienced a slight increase in December, 2024.
The TTF spot price averaged $13.82 per MMBtu, while the average NEA spot LNG price averaged $14.21 per MMBtu, up by 1% month-on-month. In the US, the Henry Hub spot price averaged $3.01 per MMBtu, increasing significantly by 38% m-o-m.
Looking ahead, weather conditions are expected to remain a critical factor influencing spot prices, with any cold snaps likely to exert additional upward pressure, the GECF concluded.
