The Northeast Asian assessed spot LNG price JKM (April delivery) for last week (24 – 28 February) fell to high-USD 13s on 28 February from low-USD 14s the previous weekend (21 February).
While modest rally on 25 February, JKM was basically in a downtrend, until falling to the low USD 13s on 27 February, against the backdrop of progress in peace talks over the war in Ukraine and weak demand in Asia.
It then rebounded on 28 February on concerns of global supply due to lower gas storage levels in Europe, rising to the low USD 13s. METI announced on 26 February that Japan’s LNG inventories for power generation as of 23 February stood at 1.94 million tonnes, down 0.07 million tonnes from the previous week.
The European gas price TTF for last week (24 – 28 February) fell to USD 13.5/MBtu (April delivery) on 28 February from USD 14.5/MBtu the previous weekend (21 February, March delivery).
TTF fell to USD 12.7 on 26 February, on the back of mild weather and discussion on the introduction of flexible gas storage targets. it then rose to USD 13.6 on 27 February as futures markets turned bullish from April onward, but it fell again due to improving weather conditions, to USD 13.5 on 28 February.
According to AGSI+, the EU-wide underground gas storage was 38.5% on 28 February, down from 41% at the end of the previous weekend, down 37.9% from the same period last year, and down 21.6% over the five-year average.
The U.S. gas price HH for last week (24 – 28 February) fell to USD 3.8/MBtu (April delivery) on 28 February from USD 4.2/MBtu the previous weekend (21 February, March delivery). HH fell due to lower heating demand as the cold snap that had hit the lower-48 in US the previous week calmed down.
The EIA Weekly Natural Gas Storage Report released on 27 February showed U.S. natural gas inventories as of 21 February at 1,840 Bcf, down 261 Bcf from the previous week, down 23.4% from the same period last year, and 11.5% decrease over the five-year average. Cold snap and HH above USD 4.0 in the previous week led to increased withdrawals.
Updated: March 3
Source: JOGMEC
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