The Northeast Asian assessed spot LNG price JKM (October delivery) for last week (1 – 5 September) rose to mid-USD 11s/MBtu on 5 September from low-USD 11s/MBtu the previous weekend (29 August).
JKM rose to mid-USD 11s/MBtu in the first half of the week due to uncertainty over possible sanctions referred from supplies from Russia’s Arctic2, but then fell back to low-USD 11s/MBtu as the market adopted a wait-and-see approach.
In the latter half of the week, JKM rose again to mid-USD 11s/MBtu as spot demand increased in Japan amid the ongoing heatwaves. METI announced on 3 September that Japan’s LNG inventories for power generation as of 31 August stood at 2.01 million tonnes, down 0.17 million tonnes from the previous week.
The European gas price TTF (October delivery) for last week (1 – 5 September) rose to USD 11.0/MBtu on 5 September from USD 10.8/MBtu the previous weekend (29 August).
TTF continued to fluctuate slightly between high-USD 10s/MBtu and around USD 11.0/MBtu throughout the week, influenced by supply restrictions due to maintenance at Norwegian production facilities, strong supply from LNG regasification, and daily changes in gas demand due to renewable energy generation and weather.
According to AGSI+, the EU-wide underground gas storage was 79.0% on 5 September, up from 77.1% the previous weekend, down 15.4% from the same period last year, and down 7.5% over the five-year average.
The U.S. gas price HH (October delivery) for last week (1 – 5 September) was almost unchanged at USD 3.0/MBtu on 5 September from USD 3.0/MBtu the previous weekend (29 August). HH remained largely unchanged throughout the week with little significant price movement amid cool weather and robust storage conditions.
The EIA Weekly Natural Gas Storage Report released on 4 September showed U.S. natural gas inventories as of 29 August at 3,272 Bcf, up 55 Bcf from the previous week, down 2.2% from the same period last year, and 5.6% increase over the five-year average.
Updated: September 8
Source: JOGMEC
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