The Northeast Asian assessed spot LNG price JKM for the previous week (19 June – 23 June) rose from the low-USD 12s on the previous week to the low-USD 13s on 21 June due to higher temperatures in Northeast Asia and strong bids from traders, but feel to the high-USD 11s on 23 June on the back of weak demand and high inventory in Europe and Asia.
According to a 21 June METI release, Japan’s LNG inventories for power generation totaled 2.37 million tonnes as of 18 June, up 0.06 million tonnes from the previous week, up 0.23 million tonnes from the end of the same month of last year and up 0.42 million tonnes from the average of the past five years.
The European gas price TTF fell slightly from USD 11.3/MBtu the previous week to USD 11.2/MBtu on 19 June following the weak demand and high inventores in Europe, but rebounded to USD 12.4/MBtu on 20 June by high volatility.
TTF then fell to USD 10.4/MBtu on 23 June, reflecting weak demand due to ample European underground gas storage.
ACER published the 23 June spot LNG assessment price for delivery in the EU at EUR 34.7/MWh (equivalent to USD 11.1/MBtu). According to AGSI+, the European underground gas storage rate as of 23 June was 75.4%, up from 73.7% the previous week.
The U.S. gas price HH rose slightly from USD 2.6/MBtu the previous week to USD 2.7/MBtu on 23 June due to expected higher summer temperatures.
According to the EIA Weekly Natural Gas Storage Report released on 22 June, the U.S. natural gas underground storage on 16 June was 2,729 Bcf, up 95 Bcf from the previous week, up 26.5% from the same period last year, and up 15.3% from the historical five-year average.
Updated 26 June 2023
Source: JOGMEC
