European LNG regains ground in competition for flexible cargoes
August 19, 2026
Natural gas prices strengthened across the major markets last week, with JKM, TTF and Henry Hub all ending above their previous-weekend levels. European prices saw the strongest gains amid geopolitical risks, storage concerns and expectations of higher temperatures.
The Northeast Asian assessed spot LNG price JKM for last week (11 – 14 August, September delivery) rose to high-USD 21s/MBtu on 14 August from low-USD 21s/MBtu the previous weekend (7 August). In the first half of the week, prices hovered around the low-USD 21s/MBtu range amid geopolitical risks stemming from a stalemate in negotiations over the situation in the Middle East.
However, with inventories remaining ample across Northeast Asia and spot demand remaining sluggish, prices fell to the high-USD 20s/MBtu range on the 13 August. On 14 August, JKM rebounded to high-USD 21s/MBtu amid concerns over gas storage replenishment in Europe ahead of winter and geopolitical risk premiums. METI announced on 12 August that Japan’s LNG inventories for power generation as of 9 August stood at 2.03 million tonnes, up 0.01 million tonnes from the previous week.
The European gas price TTF for last week (10 – 14 August) rose to USD 20.8/MBtu on 14 August from USD 18.8/MBtu the previous weekend (7 August). TTF rose to USD 20.6/MBtu on 10 August as the number of vessels transiting the Strait of Hormuz declined sharply following attacks on vessels in the strait the previous weekend.
TTF fell to USD 19.9/MBtu as a correction to the sharp rise on previous day, but low storage levels and forecasts of high temperatures in Europe provided support for prices, causing them to rise to USD 20.7/MBtu on the 12th. Although TTF fell slightly again on 13 August, it remained at a high level of USD 20.4/MBtu amid concerns over reduced supply due to unscheduled maintenance at the Kollsnes gas related facility in Norway.
On the 14 August, TTF rose to USD 20.8/MBtu against the backdrop of forecasts for rising temperatures across Europe, expectations of a decline in wind power generation, and concerns about building up storage ahead of winter. According to AGSI+, the EU-wide underground gas storage was 60.4% on 14 August, up from 58.6% the previous weekend, down 17.7% from the same period last year, and down 22.0% over the five-year average.
The U.S. gas price HH for last week (10 – 14 August, September delivery) rose to USD 2.7/MBtu on 14 August from USD 2.6/MBtu the previous weekend (7 August). HH fell to just below USD 2.8/MBtu on 11 August due to profit-taking following the previous day’s rise, but edged higher on 12 August ahead of the release of the EIA storage report.
On 13 August, HH fell to low-USD 2.7s/MBtu after the EIA storage report showed a larger-than-expected increase in inventories, although cooling demand due to above-normal temperatures provided support. HH remained in low-USD 2.7s/MBtu on 14 August. The EIA Weekly Natural Gas Storage Report released on 13 August showed U.S. natural gas inventories as of 7 August at 3,153 Bcf, up 36 Bcf from the previous week, down 0.8% from the same period last year, and 6.7% increase over the five-year average.
Source: JOGMEC
Updated: 17 August 2026
