The Northeast Asian assessed spot LNG price JKM for the previous week (1 January – 5 January) stayed almost same as low USD 11s on 5 January from low USD 11s the previous week.
While cold weather forecasts are expected, inventories remain high across Northeast Asia, demand remains thin, and supply remains ample.
METI announced on 27 December that Japan’s LNG inventories for power generation as of 24 December stood at 2.49 million tons, down 0.16 million tonnes from the previous week.
The European gas price TTF rose to USD 11.1/MBtu on 5 January from USD 10.4/MBtu the previous week. TTF rose on expectations that the expected cold weather in Europe would stimulate gas demand.
However, demand is thin as inventories remain at high levels. According to AGSI+, the EU-wide underground gas storage rate declined to 85.1% as of 5 January from 86.6% the previous week.
The U.S. gas price HH rose to USD 2.9/MBtu on 5 January from USD 2.5/MBtu the previous week. HH rose on the back of an improved demand outlook due to expected lower temperatures.
The EIA Weekly Natural Gas Storage Report released on 4 January showed U.S. natural gas inventories as of 29 December at 3,476 Bcf, down 14 Bcf from the previous week, up 18.9% from the same period last year, and 13.0% increase over the five-year average.
Updated: January 9