Pricewatch | 10 Jan 2022 | Gas Matters Today

Only Subscribers can read the full Article

European gas prices stumbled on Friday amid expectations of higher LNG imports in the coming weeks, and an uptick in wind power generation.

The February-dated NBP and TTF contracts fell by over 8% on Friday to close below the equivalent of USD 30/MMBtu for the first time since 4 January.

The loss was pinned on expectations of higher LNG imports in the second half of January – which should help alleviate draws on Europe’s already depleted gas storage sites. Higher pipeline flows from Norway also hit gas prices on the final day of trading last week.  

An uptick in wind power generation also weighed on gas prices on Friday. Wind power generated 19.8% of Europe’s electricity on Friday, up from 18.9% on Thursday, according to data compiled by WindEurope.

The European carbon price continued to fall, closing 1.5% lower at EUR 85.01/tonne.

Asian LNG marker JKM extended its losing streak, closing 0.4% lower at USD 33.95/MMBtu. The losses by the European markers saw JKM extend its premium over TTF to USD 4.60/MMBtu.

US gas benchmark Henry Hub inched towards the USD 4/MMBtu range, closing 2.7% higher on Friday. Forecasts for colder weather across the north-east and Midwest helped lift prices on Friday.

As for crude, Brent and WTI fell for the first time in five days. The US oil benchmark closed 0.7% lower at USD 78.9/barrel, with Brent down 0.3% at USD 81.75/barrel.

Front-month futures and indexes at last close with day-on-day changes (click to enlarge):

Time references based on London GMT. Brent, WTI, NBP, TTF and EU CO2 data from ICE. Henry Hub, JKM and API2 data from CME. Prices in USD/MMBtu based on exchange rates at last market close. All monetary values rounded to nearest whole cent/penny. Text and graphic copyright © Gas Strategies, all rights.

Subscription Benefits

Our three titles – LNG Business Review, Gas Matters and Gas Matters Today – tackle the biggest questions on global developments and major industry trends through a mixture of news, profiles and analysis.

LNG Business Review

LNG Business Review seeks to discover new truths about today’s LNG industry. It strives to widen market players’ scope of reference by actively engaging with events, offering new perspectives while challenging existing ones, and never shying away from being a platform for debate.

Gas Matters

Gas Matters digs deep into the stories of today, keeping the challenges of tomorrow in its sights. Weekly features and interviews, informed by unrivalled in-house expertise, offer a fresh perspective on events as well as thoughtful, intelligent analysis that dares to challenge the status quo.

Gas Matters Today

Gas Matters Today cuts through the bluster of online news and views to offer trustworthy, informed perspectives on major events shaping the gas and LNG industries. This daily news service provides unparalleled insight by drawing on the collective knowledge of in-house reporters, specialist contributors and extensive archive to go beyond the headlines, making it essential reading for gas industry professionals.

Did you know that your Internet Explorer Browser is out of date?

Your MS Internet Explorer browser is out of date, and will not be fully compatible with our website. For best browsing experience we recommend that you upgrade your IE browser to a more recent version or use an alternative, more recent browser.