Gas prices moderated down in September, both in Europe and Asia
amidst continued demand destruction.
In Europe, TTF averaged at $56/mmbtu, its second highest monthly level although down by almost 20% compared to August. meanwhile NBP traded at a hefty discount of over $25/mmbtu compared to TTF due to greater access to LNG and lower injection needs.
European demand was down by around 15% yoy, largely driven by lower consumption in industry, with the most gas- and energy-intensive industries facing shut-ins.
The commissioning of the new Dutch LNG terminal in Eemshaven allows for a greater inflow of LNG which also weighed on prices.
Last but not least, European storage levels looks also healthier, close to 90% full and standing around 3% above their 5y average.
In Asia, JKM prices fell by 9% to $48/mmbtu, reflecting on the lower European prices and muted demand in the region. preliminary data indicates that China’s gas consumption was down by around 2% yoy in Sep.
In the US, Henry Hub prices dropped by 10% to an average of $8/mmbtu -its highest September price level since 2005.
US demand remains robust, up by over 5% yoy, largely driven by strong gas-fired generation. gas production hit several times above the 100 bcf/d mark.
What is your view? How will gas prices evolve in the New Gas Year? How do you the supply outlook for the upcoming heating season?
Source: Greg Molnar (LinkedIn)
European Gas Hub is an online platform for sharing analysis and information about European natural gas markets more info
Sign up to receive our weekly newsletter with new European gas market reports, presentations & analysis. Every Tuesday.
By signing up, I agree to our TOS and Privacy Policy.
© 2020 EuropeanGasHub | All Rights Reserved
