global-hydrogen-hub global-hydrogen-hub global-hydrogen-hub
Global LNG Hub Logo
No Result
View All Result
  • Login
  • Premium Content
  • Blog
  • Events
  • Industry Links
    • LNG Industry Association
    • LNG Market Advisors
    • Government Body
    • LNG Market Information
    • LNG Legal Advisors
    • LNG Research Institute
    • LNG Training & Education
  • Other Hubs
    • GLOBAL MARITIME HUB
    • EUROPEAN GAS HUB
    • THE COAL HUB
    • GLOBAL HYDROGEN HUB
    • GLOBAL MINERALS HUB
  • FREE TRIAL
  • My account
  • Login
Cart / €0.00

No products in the cart.

  • Premium Content
  • Blog
  • Events
  • Industry Links
    • LNG Industry Association
    • LNG Market Advisors
    • Government Body
    • LNG Market Information
    • LNG Legal Advisors
    • LNG Research Institute
    • LNG Training & Education
  • Other Hubs
    • GLOBAL MARITIME HUB
    • EUROPEAN GAS HUB
    • THE COAL HUB
    • GLOBAL HYDROGEN HUB
    • GLOBAL MINERALS HUB
  • FREE TRIAL
  • My account
  • Login
Global LNG Hub
No Result
View All Result
Home LNG Contracts & Pricing

Global gas prices and Australian perspectives

Editor by Editor
4 years ago
Reading Time: 2 mins read
Australian LNG
Share on FacebookShare on TwitterShare on Linkedin

In recent weeks international gas prices have gone further into overdrive, with the Platts JKM at US$31.65/MMBtu on 28 September and the UK NBP gas price at US$29.00/MMBtu. Even US Henry Hub prices have spiked to record levels for this time of year at US$5.57/MMBtu, although well below international prices due to capacity constraints on US LNG exports.

RELATED POSTS

LNG-Prices

Weekly review of natural gas and LNG prices

2 days ago
natural-gas-price-benchmarks

Tight supply fundamentals and high storage injections kept gas prices above last year’s levels in

3 days ago
Corpus-Christi-LNG

Venture Global reaches FID for Corpus Christi 2 LNG project: and more to come

1 week ago

While oil prices are increasing, reaching US$79/bbl for Brent, they still lag well behind gas prices. LNG under an oil linked contract with an 11% slope would cost a modest US$8.70/MMBtu.

Are these elevated gas prices likely to continue? One of the major unknowns is weather, whether the coming northern winter is or isn’t warmer than expected. Along with the COVID recovery, one of the major drivers of gas prices has been last year’s colder than expected winter, which pushed up prices back in January.

Since then LNG buyers have been scrambling to replenish storage while contending with a warmer than expected summer in some countries. Weather also affects the performance of renewables and less wind in Europe and less hydro in China have also been factors increasing gas demand.

If the coming winter is warmer than expected, if the wind blows strongly in Europe, if it rains on hydro dams in China we could easily see a slump in global gas prices.

Australian gas and LNG markets still appear to be relatively unaffected by these global developments. As noted above, Australian LNG exports are largely linked to oil prices, so LNG producers are likely to do well with higher oil prices but on average earning nothing like LNG spot prices. However any spot cargoes are likely to earn mega-millions.

A 70 thousand tonne cargo sold at US$30/MMBtu would earn US$110 million or A$150 million. It remains to be seen if any Australian spot cargoes go for these prices but we have heard of one Australian cargo going for over US$20/MMBtu, which would be worth over A$100 million.

Is the global gas price surge impacting the east coast domestic gas market? It is certainly impacting the ACCC Wallumbilla LNG netback estimates, calculated on 16 September as A$22.18/GJ for October 2021, a price which no domestic gas buyer could afford. However, and counter to economic theory, domestic short-term prices are still A$7-9/GJ, reflecting lower domestic gas demand for power generation rather than global influences.

Source: EnergyQuest

Tags: Australian LNGEnergyQuestglobal gas pricesJKM pricesSpot LNG
Editor

Editor

Related Posts

LNG-Prices
LNG Contracts & Pricing

Weekly review of natural gas and LNG prices

2 days ago
natural-gas-price-benchmarks
LNG Contracts & Pricing

Tight supply fundamentals and high storage injections kept gas prices above last year’s levels in

3 days ago
Corpus-Christi-LNG
LNG Projects

Venture Global reaches FID for Corpus Christi 2 LNG project: and more to come

1 week ago
LNG-exports
LNG Projects

LNG FID activity remains extremely strong in 2025

1 week ago
LNG-prices
LNG Contracts & Pricing

Weekly review of natural gas and LNG prices

1 week ago
LNG-prices
LNG Contracts & Pricing

Weekly review of natural gas and LNG prices

2 weeks ago

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

No Result
View All Result

Trending Posts

global-LNG-supply-growth

Global LNG supply growth is set to accelerate in 2026

July 16, 2025
LNG-Prices

Weekly review of natural gas and LNG prices

July 9, 2025
LNG-exports

LNG FID activity remains extremely strong in 2025

July 29, 2025

Recent Post

LNG-Prices

Weekly review of natural gas and LNG prices

August 7, 2025
natural-gas-price-benchmarks

Tight supply fundamentals and high storage injections kept gas prices above last year’s levels in

August 5, 2025
Corpus-Christi-LNG

Venture Global reaches FID for Corpus Christi 2 LNG project: and more to come

July 30, 2025
LNG-exports

LNG FID activity remains extremely strong in 2025

July 29, 2025
LNG-prices

Weekly review of natural gas and LNG prices

July 29, 2025
Chinas-LNG-Imports

China’s LNG imports plummeted by 20% in H1 2025

July 29, 2025
LNG-HUB-Logo

Online platform for sharing analysis and information on Global and regional LNG markets. Weekly newsletter each Wednesday more info

Categories

  • Asian LNG
  • Australian LNG
  • European LNG
  • Global LNG
  • LNG Africa
  • LNG Bunkering
  • LNG Latin America
  • LNG North America
  • LNG Projects
  • LNG Trade and Pricing
  • Middle East LNG
  • Small Scale LNG
  • FLNG

Recent Posts

Weekly review of natural gas and LNG prices

Tight supply fundamentals and high storage injections kept gas prices above last year’s levels in

Venture Global reaches FID for Corpus Christi 2 LNG project: and more to come

Energise your Wednesday!

Sign up to receive our weekly newsletter with new LNG market reports, presentations & analysis. Every Wednesday!

Your subscription could not be saved. Please try again.
Your subscription has been successful.

By signing up, I agree to our TOS and Privacy Policy.

© 2020 GlobalLngHub | All Rights Reserved

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Premium Content
  • Blog
  • Events
  • Industry Links
    • LNG Industry Association
    • LNG Market Advisors
    • Government Body
    • LNG Market Information
    • LNG Legal Advisors
    • LNG Research Institute
    • LNG Training & Education
  • Other Hubs
    • GLOBAL MARITIME HUB
    • EUROPEAN GAS HUB
    • THE COAL HUB
    • GLOBAL HYDROGEN HUB
    • GLOBAL MINERALS HUB
  • FREE TRIAL
  • My account
  • Login

© 2020 GlobalLngHub | All Rights Reserved

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.