June 18, 2024
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LNG Prices Decline in Europe and Asia, Defying the Cold Wave

According to a report by Rystad Energy, LNG prices in Europe and Asia have declined. This is surprising because of the ongoing cold wave.

The report, led by senior analyst Wei Xiong, noted that Title Transfer Facility (TTF) prices in Northwest Europe dropped by 8.7% to $13.71 per million British thermal units (MMBtu) on November 28, compared to last week, amidst freezing temperatures and disruptions at Australia Pacific LNG.

The decline is attributed to low demand and new gas inventories in the northern hemisphere. In Northwestern Europe, falling temperatures are driving up heating demand, but this is unlikely to reverse the current bearish demand outlook. Germany’s gas storage facilities were 99% full as of November 26. Piped gas flows into Europe have been stable, with Russian flows increasing and Norwegian flows slightly decreasing.

In Asia, CPC in Taiwan (China) and Pakistan have purchased LNG cargoes for early next year delivery, with Thailand securing four cargoes for January and February. These purchases pegged Asia spot LNG prices at around $16 per MMBtu. China, entering its peak gas demand season, is showing sluggish demand, leading Rystad Energy to revise its forecasts for China’s 2023 gas demand and LNG imports downwards

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