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Gas Prices Down As Supply Issues Ease

LNG

European LNG prices fell 6.2% on Monday to EUR 34.23 to be down 2.3% in September to date. They reached a high of EUR 35.85 in the middle of the session and then trended down from there as some recent supply problems eased. North Asian prices are little changed with demand from China robust with August imports rising 34% y/y.

  • Maintenance at Norway’s Troll field had been prolonged due to some problems but on Monday production began to be increased again. It is expected to be at 16% of capacity by mid-week.
  • Strike action at Chevron’s Wheatstone and Gorgon facilities in Australia continues but a technical fault at Wheatstone was fixed and production resumed. The impact from industrial action has been limited but is likely to increase the longer the dispute goes unresolved. A hearing with the Fair Work Commission is scheduled for September 22.
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European LNG prices fell 6.2% on Monday to EUR 34.23 to be down 2.3% in September to date. They reached a high of EUR 35.85 in the middle of the session and then trended down from there as some recent supply problems eased. North Asian prices are little changed with demand from China robust with August imports rising 34% y/y.

  • Maintenance at Norway’s Troll field had been prolonged due to some problems but on Monday production began to be increased again. It is expected to be at 16% of capacity by mid-week.
  • Strike action at Chevron’s Wheatstone and Gorgon facilities in Australia continues but a technical fault at Wheatstone was fixed and production resumed. The impact from industrial action has been limited but is likely to increase the longer the dispute goes unresolved. A hearing with the Fair Work Commission is scheduled for September 22.