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LNG: US Gas Prices Recovering Helped By Increased Demand For Liquefaction

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European natural gas prices fell 3.7% on Monday to EUR 34.33 after a low of EUR 33.96 to be down 13.8% in September, while they rose in the US and Asia. Europe’s weakness was driven by a return to milder weather after a cold snap, which should allow storage facilities to continue to fill ahead of winter. The Netherlands and Germany saw small drawdowns this month.

  • Despite increased competition for LNG cargoes from Asia and Egypt, European imports have increased again after a lull.
  • UBS expects European storage to be at 50% by the end of winter. It also said that demand had been around 20% below the 5-year average. It revised down its 2024 and 2025 demand forecasts due weak industrial consumption and increased renewables usage.
  • US natural gas rose 3.9% to $2.40 to be 12.6% higher this month. The rally was driven by declining inventories after a period of excess supply which pressured prices. There is also increased demand for gas for liquefaction to export. LNG exports were above 13 Bcf/day again last weekend, according to NatGasWeather.com. It is also forecasting higher-than-average temperatures for most of the US.
  • North Asian gas prices rose 0.4% on Monday but are still down almost 8% in September as markets believe there is enough global supply to meet demand. 
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European natural gas prices fell 3.7% on Monday to EUR 34.33 after a low of EUR 33.96 to be down 13.8% in September, while they rose in the US and Asia. Europe’s weakness was driven by a return to milder weather after a cold snap, which should allow storage facilities to continue to fill ahead of winter. The Netherlands and Germany saw small drawdowns this month.

  • Despite increased competition for LNG cargoes from Asia and Egypt, European imports have increased again after a lull.
  • UBS expects European storage to be at 50% by the end of winter. It also said that demand had been around 20% below the 5-year average. It revised down its 2024 and 2025 demand forecasts due weak industrial consumption and increased renewables usage.
  • US natural gas rose 3.9% to $2.40 to be 12.6% higher this month. The rally was driven by declining inventories after a period of excess supply which pressured prices. There is also increased demand for gas for liquefaction to export. LNG exports were above 13 Bcf/day again last weekend, according to NatGasWeather.com. It is also forecasting higher-than-average temperatures for most of the US.
  • North Asian gas prices rose 0.4% on Monday but are still down almost 8% in September as markets believe there is enough global supply to meet demand.