Liquified Natural Gas (LNG)

Ukraine has ended Russian gas transit to Europe as its 2019 agreement with Gazprom expired, marking a historic step in reducing Europe’s reliance on Russian energy, though it has led to power cuts in Moldova’s breakaway Transnistria region. While alternative energy sources are expected to mitigate the impact for most EU countries, Russia-friendly leaders in Slovakia and Hungary have criticized the decision amid rising costs.

European countries reliant on Russian gas are scrambling to find ways to pay for supplies after new US sanctions on Gazprombank, which could disrupt payments and halt gas flows, particularly affecting Hungary and Slovakia. Potential solutions include waivers or alternate payment mechanisms, but geopolitical complexities and the impending transition to a Trump administration add uncertainty.

The M1 Henry Hub natural gas futures rallied to $3.563/MMBtu on 22 Nov, although the benchmark natural gas futures contract appears to be meeting resistance at this level. According to LSEG, the amount of gas flowing to the seven big operating US LNG export plants was on track to rise to a 10-month high this week….

The Dec’24 TTF rebounded in early November due to winter demand concerns, Norwegian outages, and the looming Ukraine-Russia gas transit expiration. European LNG imports rose for the first time in 10 months, while Asia’s declined. The Dec’24 JKM softened to just above $13/MMBtu on mild temperatures and secure North Asian supply…

LNG prices continue to be affected by a regional escalation of the war in Gaza over the past fortnight….

LNG prices continue to be affected by a regional escalation of the war in Gaza over the past fortnight….

Government and company officials are in discussions about potential imports of gas from Azerbaijan through Russia and Ukraine to replace a transit deal that expires at the end of the year. Negotiations were continuing as of last week, Bloomberg previously reported.

QatarEnergy’s joint venture, which aims to convert the Golden Pass LNG import terminal in Texas into a large-scale export facility, has requested a three-year extension from US authorities to complete the project by 30 November 2029

QatarEnergy’s joint venture, which aims to convert the Golden Pass LNG import terminal in Texas into a large-scale export facility, has requested a three-year extension from US authorities to complete the project by 30 November 2029

The expansion of LNG exports is responsible for scores of premature deaths and nearly $1bn in annual health costs, according to a new report from the green groups Greenpeace and Sierra Club. The report links air pollution from LNG exports to an estimated 60 premature deaths and $957m in total health costs each year.

ExxonMobil and QatarNergy are delaying the start-up of their $10bn joint venture Golden Pass LNG export project in Texas to late 2025 from 1H25 after work at the facility stalled following the bankruptcy of the lead contractor. Zachry Holdings.

A US court ordered federal regulators to reassess the impact of greenhouse gas emissions from Commonwealth LNG’s Louisiana project, potentially delaying full approvals.

Russia attacked and damaged a gas facility in the Poltava region operated by UkrGazVydobuvannya (UGV), Ukraine’s state-owned producer, on 03 July.

The European Union has agreed on the contents of a 14th sanctions package against Russia, aiming at the latter’s LNG sector for the first time.

Freeport LNG has sued contractors Zachry Industrial, Chiyoda International, and CB&I over defects in electric motors at its Texas plant, which have led to significant outages and costly repairs, with damages exceeding $1 million.

The National Grid announced its plan to sell Britain’s largest liquefied natural gas (LNG) terminal, Grain LNG, as part of its strategy to streamline operations and focus on networks, as stated during the presentation of its 2023/24 business year earnings.

The Panama Canal is in talks with US LNG producers to increase transit through the passage as water levels begin to recover.

German gas consumption rebounded sharply in the week to Apr 21 due to colder weather, with stocks at 67.2% of capacity compared with 69.1% the previous week.

As crude prices strengthen, producers remain keen to keep crude flowing. However, these wells in the US produce natural gas as a by-product, leading to an even greater supply glut.

Credit Agricole announced its decision to abstain from providing financing to two significant LNG projects. This move reflects the bank’s dedication to refraining from supporting new fossil fuel developments…

This fortnight in LNG, we have seen a poor heating demand in Europe amid stocks still at 66% of full capacity compared to last fortnight’s levels of 70%, on Jan 31. Read more in our LNG Report.

These last two weeks in LNG: we have seen a lack of support despite freezing weather as most LNG benchmarks were seen weakening, with Mar TTF notably trading from €34/MWh on Jan 05 to €27.97/MWh on Jan 18. Storage is decreasing but market participants are not worried.

Freight rates out of the US Gulf Coast fell 10c on the week, in turn weakness spread like the plague into JKM and most notably TTF contracts. Top news this week comes out of Australia, with Woodside Energy and Santos