Gas Prices Edge Higher, Chevron Close To Deal With Workers

European LNG prices rose another 1.8% to EUR 37.45 on Wednesday after jumping 8.3% the previous day. It reached a high of EUR 39.58 early in the European session. They are currently 6.9% higher in September to date but still remain low. While stocks remain high in Europe, the market has been jittery re supply disruptions heading into the northern hemisphere winter which have included delays to the end of maintenance in Norway and strikes in Australia. North Asian prices continue to move sideways.

• Today the arbitrator between Chevron and Australia’s union alliance has announced that there has been agreement on the majority of the details of the first enterprise agreement with Chevron but that a deal is needed on the outstanding issues otherwise what has been agreed will “simply evaporate”. Both sides are required to accept or reject the recommendations by 9am Friday. A hearing before the Fair Work Commission is scheduled for Friday.
• The increase in flows from Norway’s large Troll gas field was expected before the weekend but has been delayed and the operator has said that it will take longer than expected due to maintenance issues.
• Australia’s competition watchdog ACCC is forecasting LNG exports from the east coast (current dispute is west coast) to rise by 9% y/y in Q1 2024.