By how much could LNG supply increase this summer, and how will competition for LNG between Europe and northeast Asia play out? Are Chinese firms likely to return to the spot market this winter, or do they have enough domestic production and contracted imports to meet demand over this period? To what extent could higher nuclear and renewable power generation curb demand for LNG in Japan and South Korea? And how will price-sensitive markets in south and southeast Asia respond to lower prices?
Small-scale LNG logistics chains have become more important for delivering LNG via shipping from large supply terminals to customers via satellite terminals. An ideal application of small-scale LNG logistics chains is in the Mediterranean basin, where the maximum distance between two ports is always less than two thousand miles.
Why are European gas buyers reluctant to commit to long-term LNG contracts? European buyers’ general avoidance of long-term contracts signals that they will be willing to bid up prices when they need supplies. Paired with its continuing demand for LNG and refusal to meaningfully invest in new infrastructure, Europe’s “outbid everyone” LNG procurement strategy is a recipe for price volatility and higher prices – which the market already saw in 2021 and 2022.
ACER’s daily European LNG price assessment closed at €40.16 on September 26 (up from €34.83 one week ago). ACER publishes its LNG price assessment every weekday before 18.00 CET. The LNG benchmark provides for greater market transparency based on mandatory data reporting; and reflects real-world prices for LNG. Stakeholders may use the LNG benchmark voluntarily. Check the ACER website page (here) for daily updates.
The new natural gas year is upon us: gas prices strengthened in September in all key gas markets, but remains...
The Northeast Asian assessed spot LNG price JKM for the previous week (18 - 22 September) rose from the high...
The Northeast Asian assessed spot LNG price JKM for the previous week (11 - 15 September) rose from the low...
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