Review of natural gas and LNG prices

by Editor

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The Northeast Asian assessed spot LNG price JKM (April delivery) for last week (24 – 28 March) fell to high-USD 12s on 28 March from high-USD 13s the previous weekend (21 March).

JKM fell throughout the week. In the first half of the week, it fell due to the progress in negotiations between the US and Russia over the war in Ukraine and the resulting agreement by both Ukraine and Russia on a ceasefire in the Black Sea, and the price was below USD 13 on the 26th.

Thereafter, there was no significant change in fundamentals through the second half of the week, and it continued to fall slightly. METI announced on 26 March that Japan’s LNG inventories for power generation as of 23 March stood at 1.83 million tonnes, up 0.27 million tonnes from the previous week.

The European gas price TTF (April delivery) for last week (24 – 28 March) fell to USD 12.8/MBtu on 28 March from USD 13.5/MBtu the previous weekend (21 March).

TTF was in a downward trend throughout the week generally, due to continuing predictions of rising temperatures and higher renewable energy output. Market sentiment remained bearish as negotiations between the US and Russia over the war in Ukraine progressed, the price was USD 12.8 on 28 March.

According to AGSI+, the EU-wide underground gas storage was 33.6% on 28 March, down from 33.8% at the end of the previous weekend, down 42.5% from the same period last year, and down 24.3% over the five-year average.

The U.S. gas price HH for last week (21 – 28 March) rose to USD 4.1/MBtu on 28 March (May delivery) from USD 4.0/MBtu the previous weekend (21 March, April delivery).

HH was in a downtrend during the first half of the week due to rising temperatures, mainly in the eastern half of the U.S., and fell to USD 3.8 on 25 March. It then rebounded from 26 March onward on the view that demand would be accelerated in the long term, it rose to USD 4.1 on 28 March.

The EIA Weekly Natural Gas Storage Report released on 27 March showed U.S. natural gas inventories as of 21 March at 1,744 Bcf, up 37 Bcf from the previous week, down 24.2% from the same period last year, and 6.5% decrease over the five-year average.

Updated: March 31

Source: JOGMEC

Review of natural gas and LNG prices