European LNG Prices Lower As Wind Power Increases

European LNG prices fell 4% to EUR 28.12 on Monday trending lower throughout trading as power from renewables picked up. Half of the UK’s power needs were provided by wind yesterday. Wind power in Germany is expected to be high through this week at a time that flows from Norway have been unexpectedly disrupted and shipments from Qatar are being rerouted around southern Africa.

• Europe is forecast to see colder weather again later in February. The disruption to Norwegian flows has not yet impacted market pricing as demand has been low, but it is these supplies that have kept European storage levels above seasonal averages.
• US natural gas prices fell 0.5% to be down 1.5% in February to date due to mild weather which could shift cooler later in the month.
• The US government has reassured buyers of its LNG that the freeze on new export approvals is only a “pause” and that they shouldn’t be concerned about supplies. It is a freeze on new licenses for LNG export facilities while their environmental and economic impact is assessed. The Energy Department estimates that US LNG shipments will still almost double by 2030.
• North Asian prices were little changed.