Global Natural Gas Prices Plunge With Demand Destruction From the Industrialists

Global Natural Gas Prices Plunge With Demand Destruction From the Industrialists

Global Natural Gas Prices Plunge With Demand Destruction From the Industrialists

  • 06-Dec-2022 6:10 PM
  • Journalist: Harold Finch

Texas, USA- Global Natural Gas prices slumped due to insufficient demand and high inventories among enterprises. European benchmark Natural Gas prices are steadily declining over the past few weeks as the region has experienced milder weather than usual which has helped dampen demand. European Union (EU) has also met a target for refilling gas storage. Volume storage facilities are currently almost full, which helped the prices remain low. Liquefied Natural Gas (LNG) and Norwegian pipeline supply have been potent. Additionally, wind power output has been relatively high, reducing gas demand from power plants. The agreement among EU countries to lower prices and consumption has also contributed.

At the European ports, LNG vessels are accumulated because there is not enough capacity for Europe to receive these vessels, which contributed to price decline. On the inverse, 10% of these vessels are out of service, driving up container prices. Governments and utilities in Europe are scrambling to ensure they have enough Natural Gas supply to get through this winter and possibly have some left over to stockpile for 2023.

Henry Hub Natural Gas prices in the USA also fell on the prediction that the weather over the next two weeks will not be cold as expected. Freeport LNG terminal will start in a couple of weeks, reaching total capacity in March 2023. The January 2023 NYMEX contract price for Natural Gas decreased to USD 6.930/MMBtu, down 78 cents on 1st December. Net imports of Natural Gas from Canada to the USA also declined, with feeble consumption from the industrial sector.

According to ChemAnalyst, Europe will have milder than normal temperatures this winter which will oscillate the Natural Gas prices. Factors such as potential higher demand for LNG from Asia during the winter and any delay due to outages could affect prices. However,lower wholesale prices don’t immediately affect into declining retail prices for the end user. In the US, the resumption of the Freeport LNG terminal will open up other outlets for US Natural Gas, driving demand.


Track Real Time Prices

Related News

Bangladesh Uncovers Historic Gas Bargain After 8 Months of Low Prices
  • 01-Feb-2023 12:13 PM
  • Journalist: Jacob Kutchner
Exxon Achieves Record-Breaking Profits of $56 billion in 2022, Surpassing Western Oil Majors
  • 01-Feb-2023 11:09 AM
  • Journalist: Shiba Teramoto
European Natural Gas Demand Increases Along With Further Supply Cuts From Gazprom
  • 23-Jan-2023 4:57 PM
  • Journalist: Nicholas Seifield
Florida Leads the Way to Sustainability with Landfill Gas to RNG Facility
  • 06-Jan-2023 6:54 PM
  • Journalist: Shiba Teramoto