The Northeast Asian assessed spot LNG price JKM (October delivery) for last week (25 – 29 August) fell to low-USD 11s/MBtu on 29 August from high-USD 11s/MBtu the previous weekend (22 August). With little change in the situation of low demand and ample supply, JKM continued to decline to mid-USD 11s/MBtu at first half of the week.
Then, amid high inventories, as highlighted by the information that Japan’s LNG inventories for power generation have been highest level in recent 9 weeks, the price declined further to low-USD 11s/MBtu in the latter half of the week. METI announced on 27 August that Japan’s LNG inventories for power generation as of 24 August stood at 2.18 million tonnes, up 0.16 million tonnes from the previous week.
The European gas price TTF for last week (25 – 29 August) fell to USD 10.8/MBtu on 29 August (October delivery) from USD 11.4/MBtu the previous weekend (22 August, September delivery). TTF declined in the first half of the week on the back of stable supply from Norway.
Although Norwegian supply decreased in the middle of the week, prices remained weak due to mild weather and increased LNG imports, and eventually stood at USD 10.8/MBtu on 29 August when the contract rolled over to October delivery. According to AGSI+, the EU-wide underground gas storage was 77.1% on 29 August, up from 75.3% the previous weekend, down 16.7% from the same period last year, and down 8.4% over the five-year average.
The U.S. gas price HH for last week (25 – 29 August) rose to USD 3.0/MBtu on 29 August (October delivery) from USD 2.7/MBtu the previous weekend (22 August, September delivery). HH showed an upward trend throughout the week, supported by strong LNG exports amid mild weather.
The EIA Weekly Natural Gas Storage Report released on 28 August showed U.S. natural gas inventories as of 22 August at 3,217 Bcf, up 18 Bcf from the previous week, down 3.4% from the same period last year, and 5.0% increase over the five-year average.
Updated: September 1
Source: JOGMEC
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