European LNG regains ground in competition for flexible cargoes
August 19, 2026
Natural gas prices moved higher across the major LNG and gas benchmarks last week, with JKM and TTF rising sharply amid tighter supply concerns and geopolitical tensions, while Henry Hub recorded a modest increase.
The Northeast Asian assessed spot LNG price JKM for last week (17–21 August, October delivery) rose to high-USD 23s/MBtu on 21 August from high-USD 21s/MBtu the previous weekend (14 August, September delivery).
At the start of the week, JKM traded in high-USD 21s/MBtu, supported by geopolitical tensions and a narrowing JKM-TTF spread that diverted cargoes toward Europe. On 18 August, it was largely unchanged amid lower cooling demand in Northeast Asia due to continued rainfall and ample supply availability.
From 19 August onward, however, JKM moved higher as the narrowing JKM-TTF spread raised concerns over tightening spot LNG availability in Asia. Continued buying interest from South Asian buyers despite elevated prices further supported the market, pushing JKM into high-USD 23s/MBtu by 21 August.
METI announced on 19 August that Japan’s LNG inventories for power generation as of 16 August stood at 2.26 million tonnes, up 0.23 million tonnes from the previous week.
The European gas price TTF for last week (17–21 August) rose to USD 22.6/MBtu on 21 August from USD 20.8/MBtu the previous weekend (14 August).
TTF rose on 17 August as geopolitical tensions increased following Russian attacks on Ukraine’s gas infrastructure. From 18 August onward, however, it climbed sharply due to reduced gas supply from Norway caused by unplanned maintenance at the Karsto gas processing facility, as well as concerns over securing sufficient inventories for winter amid limited injections into EU gas storage.
TTF exceeded USD 22/MBtu on 20 August, reaching its highest level since January 2023. On 21 August, it continued to rise despite the recovery in Norwegian gas supply, ending the day at USD 22.6/MBtu.
According to AGSI+, the EU-wide underground gas storage was 62.3% on 21 August, up from 60.4% the previous weekend, down 17.5% from the same period last year, and down 21.8% over the five-year average.
The U.S. gas price HH for last week (17–21 August, September delivery) rose to USD 2.8/MBtu on 21 August from USD 2.7/MBtu the previous weekend (14 August).
HH edged lower on 17 August due to limited cooling demand, but rose on 18 August following forecasts for higher temperatures. Thereafter, record-high US dry gas production and storage levels above the five-year average capped further gains, with prices remaining largely stable.
On 20 August, it eased slightly as ample storage inventories weighed on the market, but rebounded to around USD 2.8/MBtu on 21 August on expectations of rising temperatures.
The EIA Weekly Natural Gas Storage Report released on 20 August showed U.S. natural gas inventories as of 14 August at 3,169 Bcf, up 16 Bcf from the previous week, down 0.9% from the same period last year, and 6.2% increase over the five-year average.
Source: JOGMEC
Updated: 24 August 2026
