The landing price for LNG delivered ex-ship (DES) to northwest Europe in November was last seen late on Friday at USD 12.98/MMbtu (EUR 40.16/MWh), its highest since 1 December 2023, when it hit USD 13.05/MMbtu, according to data from Spark Commodities.
It tracked front-month prices on the TTF, which have gradually crept higher over the last two weeks to settle at their highest on Friday since 1 December at EUR 40.98/MWh.
On Thursday, EU LNG prices hit a one-month high amid rising concerns about an escalation of the conflict in the Middle East hitting the export of energy commodities, Montel reported.
Flat Asia
Meanwhile, Asian LNG equivalent prices had moved sideways over the same period, with the JKM marker for November edging down to settle on Friday at USD 13.09/MMbtu, or at a discount of USD 0.16 to its TTF equivalent.
“Gains in in north Asian LNG markets were more limited as traders weighed up the supply risks”, said Australia’s ANZ bank, adding, however, the geopolitical risk premium given the Middle East crisis “appears to be holding LNG prices above USD13/MMBtu”.
The escalating war, as well as the upcoming end of Russian gas flows to Europe via Ukraine, were driving global markets, said ANZ.
“The gains highlight how the market remains sensitive to supply disruptions despite relatively full storage facilities and subdued demand.”
Source: Andres Cala
