Review of natural gas and LNG prices

by Editor

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The Northeast Asian assessed spot LNG price JKM for last week (21 April – 25 April, June delivery) fell to low-USD 11s/MBtu on 25 April (June delivery) from low-USD 12s/MBtu the previous weekend (17 April).

JKM fell due to the price differential in LNG price between Asia and Europe and increased supply of US spot LNG to Asia through arbitrage amid lackluster demand growth in Asia.

METI announced on 23 April that Japan’s LNG inventories for power generation as of 20 April stood at 2.11 million tonnes, down 0.02 million tonnes from the previous week.

The European gas price TTF (May delivery) for last week (21 April – 25 April) fell to USD 11.2/MBtu on 25 April from USD 10.7/MBtu the previous weekend (17 April).

TTFs trended lower throughout the week due to relatively warm weather and stable supplies. According to AGSI+, the EU-wide underground gas storage was 38.1% on 25 April, up from 36.5% the previous weekend, down 38.3% from the same period last year, and down 21.4% over the five-year average.

The U.S. gas price HH (May delivery) for last week (21 April – 25 April) fell to USD 3.0/MBtu on 25 April from USD 3.3/MBtu the previous weekend (17 April). The forecasts of warm spring weather across the U.S. kept heating demand low.

The EIA Weekly Natural Gas Storage Report released on 18 April showed U.S. natural gas inventories as of 24 April at 1,934 Bcf, up 88 Bcf from the previous week, down 19.8% from the same period last year, and 2.2% decrease over the five-year average.

Updated: April 28

Source: JOGMEC

Review of natural gas and LNG prices

Europe’s exposure to a wild and volatile global gas market