• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 2 days How Far Have We Really Gotten With Alternative Energy
  • 1 day By Kellen McGovern Jones - "BlackRock Behind New TX-LA Offshore Wind Farm"
  • 9 days Natron Energy Achieves First-Ever Commercial-Scale Production of Sodium-Ion Batteries in the U.S.
  • 9 days Bad news for e-cars keeps coming
  • 8 days The United States produced more crude oil than any nation, at any time.
  • 11 days RUSSIA - Turkey & India Stop Buying Russian Oil as USA Increases Crackdown on Sanctions
ESG Enthusiasm Wanes with U.S. Shareholders

ESG Enthusiasm Wanes with U.S. Shareholders

Despite the rising number of…

Energy Services Employment Rebounds

Energy Services Employment Rebounds

U.S. oilfield services jobs saw…

Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. 

More Info

Premium Content

The Global LNG Market Is Reacting To Higher Natural Gas Prices In Europe

  • European natural gas prices have been climbing in the past two weeks due to outages and maintenance at processing plants.
  • The rise in European natural gas prices is now influencing global LNG markets, with spot LNG prices in Asia spiking.
  • With warmer weather ahead, it is likely that natural gas demand will climb and global LNG prices will follow.

Europe’s benchmark natural gas prices and supply and demand fundamentals have been reflected in the global and Asian prices of LNG in recent weeks, Rystad Energy said in a note on Wednesday.

Prices in Europe have increased in the past two weeks due to outages and maintenance at gas processing plants in Norway, which is now the single-largest supplier of gas to Europe after Russia cut off deliveries to many EU customers following the Russian invasion of Ukraine.

After weeks of falling prices amid subdued LNG demand globally and weak demand from the industry, the front-month futures at the TTF hub, the benchmark for Europe’s gas trading, have risen in recent days. As of 10:41 GMT on Wednesday, the July contract traded at $42.12 (38.57 euros) per megawatt-hour (MWh), which was much higher than the 25 euros/MWh from three weeks ago.

Issues at Norway’s Hammerfest LNG export terminal and maintenance at gas processing plants in Nyhamna and Kollsnes have been keeping gas flows capped, leading to higher spot prices. Maintenance on the Oseberg field offshore Norway is also reducing supply and contributing to higher prices.

“TTF prices appear to be in a state of flux as it continues to rebalance itself after a spate of supply shocks associated with Norwegian pipeline gas,” Rystad analysts wrote in Wednesday’s note as carried by Montel.

The recent rise in European prices has driven an increase in Asia’s spot LNG prices.

“With activity in the Asian gas market relatively uneventful, price volatility is the result of the marker tracking the TTF,” Rystad Energy said.

Warmer weather as the northern hemisphere heads into the summer should also raise gas and LNG prices with higher energy demand for cooling.

Last week, Asia’s spot LNG prices halted a weeks-long decline and soared to a three-month high, per estimates from industry sources cited by Reuters.

The spot price for delivery to North Asia in August surged by 50% last week, compared to the week prior, to $13.50 per million British thermal units (MMBtu), the highest level since the middle of March.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:

Download The Free Oilprice App Today

Back to homepage

Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News