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LNG: Supply In Focus, Contract Expiries Also Impacting Prices

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Natural gas prices were mixed on Tuesday with Europe and north Asia down but the January US contract up. Europe fell 2.4% to EUR 46.58 after a high of EUR 48.44 earlier in the session driven by auction data for the Slovakia-Austria crossing signalling that flows will continue into Austria in December despite its decision not to pay Russia’s Gazprom. 

  • The December European contract expires on Thursday, which also likely weighed on prices that are up almost 15% this month.
  • Supply remains in focus going into winter. There is yet to be an alternative agreed once Ukraine stops the flow of Russian gas through its territory from year end. Also Woodside has said that its Australian Pluto LNG plant will be closed until mid-December.
  • The Henry Hub December contract expired on Tuesday and finished down 1.2% to $3.33 on the day to be up 23% in November driven by cooler weather, less supply and bargain hunting. The January 2025 contract rose 1.2% to $3.49 though as forecasts signal lower temperatures in the eastern US at the start of December, according to Maxar.
  • US gas inventories remain above the 5-year average at +6.4%. Weekly data is out later today.
  • North Asian prices followed Europe lower.
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Natural gas prices were mixed on Tuesday with Europe and north Asia down but the January US contract up. Europe fell 2.4% to EUR 46.58 after a high of EUR 48.44 earlier in the session driven by auction data for the Slovakia-Austria crossing signalling that flows will continue into Austria in December despite its decision not to pay Russia’s Gazprom. 

  • The December European contract expires on Thursday, which also likely weighed on prices that are up almost 15% this month.
  • Supply remains in focus going into winter. There is yet to be an alternative agreed once Ukraine stops the flow of Russian gas through its territory from year end. Also Woodside has said that its Australian Pluto LNG plant will be closed until mid-December.
  • The Henry Hub December contract expired on Tuesday and finished down 1.2% to $3.33 on the day to be up 23% in November driven by cooler weather, less supply and bargain hunting. The January 2025 contract rose 1.2% to $3.49 though as forecasts signal lower temperatures in the eastern US at the start of December, according to Maxar.
  • US gas inventories remain above the 5-year average at +6.4%. Weekly data is out later today.
  • North Asian prices followed Europe lower.