Pricewatch l 21 September 2023 I Gas Matters Today

Only Subscribers can read the full Article

In a reversal of roles compared with price movements on Tuesday, European natural gas prices edged up only a little on Wednesday, while the JKM marker in Asia jumped up after remaining flat the previous day, widening the TTF-JKM spread.

However, news that industrial action at LNG facilities in Australia may be nearing a resolution saw European prices tumble on Thursday morning before a late morning rally.

The operator of the Gorgon and Wheatstone liquefaction plants, Chevron, announced on Thursday that it had agreed a proposed deal put forward by the Fair Work Commission, Australia’s industrial tribunal. It now remains to be seen what the unions will decide by the set deadline of 09:00 local time on Friday.

If the unions do not agree to the deal, the tribunal could – after a hearing on Friday morning – impose new terms and conditions using what is known as an “intractable bargaining declaration”.

Meanwhile, Norwegian network operator Gassco reported that output from the giant Troll field is finally ramping up, after weeks of disruption caused by maintenance. However, significant uncertainty remains and the market is highly sensitive to any new developments, such as the extension of works on the Norway link to the UK’s St. Fergus natural gas terminal.

In Continental Europe, TTF front-month futures closed up 1.7% on Wednesday, from USD 11.52/MMBtu on Tuesday to USD 11.71/MMBtu. The contract opened significantly lower on Thursday morning but had climbed to well above Wednesday’s close by lunchtime.

In the UK, NBP was up 1.9% on Wednesday, from USD 11.60/MMBtu on Tuesday to USD 11.81/MMBtu.

In Asia, JKM jumped 6.8% on Wednesday, from USD 13.33/MMBtu on Tuesday to USD 14.24/MMBtu. This meant the TTF-JKM spread widened from USD 1.81/MMBtu on Tuesday to USD 2.53/MMBtu on Wednesday, reversing the previous day’s movement.

In the US, Henry Hub fell by 4.0%, from USD 2.85/MMBtu on Tuesday to USD 2.73/MMBtu on Wednesday.

Oil prices fell for the second consecutive day, with Brent down 0.9% from USD 94.34/barrel on Tuesday to USD 93.53/barrel on Wednesday. WTI was down 1.0%, from USD 91.20/barrel to USD 90.28/barrel. The US Federal Reserve on Wednesday left interest rates where they were, in line with market expectations, but cautioned that they would remain high for the foreseeable future, raising concerns over demand.

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.

Contact the editor:

Andreas Walstad
[email protected]

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.