For the Quarter Ending September 2022
The prices of LNG in the US were rising during the start of the third quarter of 2022 due to high export demand from the European countries, who were desperately trying to find an alternate source to replace the Russian supply. Record-level high prices of alternate energy sources like coal in the domestic market further increased the demand for LNG in the American market during the start of Q3 2022. However, the market scenario turned over its heels when the production rates in America increased along few disruptions in Exportation facilities, leading to the rise of product availability in the market, ultimately reducing the cost of LNG in the US.
The Asia Pacific region's Liquefied Natural Gas prices followed the same pattern as those of the rest of the world market. Russia was concerned that further supply cuts would worsen the fuel crisis in Asia, which caused prices to soar in the first half of the third quarter of 2022. There was fierce competition between Asia and Europe for the limited supply of LNG cargo. Following hydropower disruptions in the Sichuan district, China's struggle to meet peak power demand increased the production costs for key downstream derivative ventures. In India, Liquefied Natural Gas prices fell in the second half of Q3 due to lower production and a steep decline in expensive imports. Gas importers from India are unable to purchase LNG on the spot market. The majority of supplies are going to Europe, where consumers are eager to pay record-high prices for LNG cargoes.
Due to the Nord Stream 2 pipeline supply interruption from Gazprom, Russia, to the European region, Liquefied Natural Gas (LNG) prices in the region rose during Q3 2022. The Dutch Title Transfer Facility (TTF), the European standard for trading natural gas, saw an increase in the front gas month costs. The upsurge in energy and utility expenses pushes inflation and tightens the margins and edges among major ventures. It also drives up the downstream derivative market. The Euro currency fell to its lowest level as a result of the recent increase in gas costs, which led to a recession in the region.
For the Quarter Ending June 2022
The price of Liquefied Natural Gas (LNG) was steadily increasing in the American market due to rising demand from Europe. America has been trying to improve the exportation rates to Europe to meet their requirement rates and help them overcome their reliance on Russian oil. Usually, LNG gets stored during this quarter to meet the heating needs and fuel all heating appliances. This year, due to the increased export rates and hotter weather conditions, the need for fueling cooling appliances increased LNG prices in the second quarter of the American market. The price of LNG in the US at the start of Q2 2022 was USD 3.16/DGE.
The price trend of Liquefied Natural Gas in the Chinese market during the second quarter of 2022 peaked in April, but various factors contributed and brought down the prices over the next two months. The price hiked during the start of Q2, 2022, largely due to the lockdowns in Chinese and the disrupted supply to the various shipment shortages in major Chinese ports. The LNG price dropped post-April can be traced to the availability of cheap Russian coal, and many end-users and industries preferred Russian coal over LNG due to the lower price. This transition of energy sources reduced the demand for LNG in the Asian market and brought down the prices. The price of LNG in China was recorded at around USD 1076/MT during Q2 2022.
Since European countries primarily use Natural Gas for their energy requirements and most of them ban importing Russian oil as an act of opposition to Moscow’s invasion of Ukraine have pressurized the European LNG market and hiked the prices throughout the Q2 of 2022. America has stepped in to fill the supply void created by the sanctions against Russian oil. Due to the high demand for LNG, as many countries depend on LNG for energy, the supply from America couldn’t ease the price rise. The fire incident in the second-biggest LNG exporting facility in America disrupted the supply from the US and worsened the condition of the European market. The Dutch TTF value of LNG was Euro 139.588/MT during the end of Q2 2022.
For the Quarter Ending March 2022
Contracts in the LNG segments enlisted an expansion in movement in Q1 2022 compared to Q4 2021. Global LNG and Natural Gas costs expanded this quarter, with the expansion of the international strain among Russia and Ukraine affecting the product's costs alongside its downstream derivative endeavors. The excessive cost environment and import sanctions against Russian oil have spurred North American makers to increase production. With the current domestic advancement rates in the United States, Canadian Natural gas was seen strategically set up to supply hotspots for LNG sends out. NYMEX commodity futures for LNG rose in the second half of the quarter due to squeezing supply and strong demand.
A surge in Asian LNG costs to record highs, developing international vulnerability, and domestic interest obliteration show China's LNG imports do not show a lot of development in 2022, compelling the country to rely all the more vigorously upon pipeline gas imports and domestic gas production. In this quarter, the cost of LNG answered to record undeniable levels with supply lack, and traders began to find substitute sustainable sources that are accessible easily. PipeChina and Shell's China exchanging arms on Feb. 22 marked a memorandum of cooperation and two terminal use arrangements for the Yuedong LNG and Beihai LNG terminals for 2022. Logistics constraints and surging transportation costs kept LNG prices on the upper end.
In this quarter, the costs of LNG flooded radically with restricted accessibility and good interest from the end-user ventures. Following Russia's attack on Ukraine in February 2022, LNG costs spiked to extraordinary levels, arriving at a new high, and the expanded Title Transfer Facility (TTF) impacted the cost pattern. Even if the capacity shortfall has been restricted contrasted with the earlier years, stockpiling levels stayed at the lower end of the historical range. Economic situations got moderately more settled in January and February as market basics improved, mainly because of the warming climate. However, since the finish of February, the Russia-Ukraine struggle and its connected worries for the security of the European energy supply set off a stratospheric ascent of European gas costs, which arrived at new record highs toward the start of March.
For the Quarter Ending December 2021
With the starting of this quarter, LNG prices surged continuously with the succeeding months of the quarter. As the demand outpaced supply, the market sentiments remained strong throughout the quarter. The US Henry Hub prices accelerated with healthy demand from the Asian and European regions, which resulted in affirmed exports from the region. Several LNG projects are set to come online this quarter in the US. This quarter, US exports shift towards Europe with a supply crunch and insufficient supply. LNG flows from the US to the South American region, including Brazil and Argentina, surged while imports to Mexico slipped drastically. Healthy demand and unplanned outages at LNG facilities resulted in a market trend.
In Q4 2021, European LNG demand was higher in the region compared with the previous quarter, despite some response to more significant costs lessening interest. Piped imports from Russia were firmly down with essentially lower streams on the Yamal Europe route. The high point at Title Transfer Facility (TTF) in the Netherlands stayed on the upper end with healthy demand from the downstream derivative market. Firm demand recuperation, plunging domestic production, lower LNG inflow, and decreased Russian pipeline conveyances to the European Union (EU), brought about a closed gas market. Impacted gas stockpiles furthermore put the vertical squeeze on gas costs which took off to all time high in Q4 2021.
In Q4, the LNG market remained boosted with strong market sentiments and insufficient product availability. LNG spot costs followed a similar price trajectory to the European hubs amid solid contests for LNG cargoes. More tight market essentials moved Asian spot costs to all-time highs in Q4, taking off to a normal of over USD 35/MMBtu. LNG growth in China and the Southeast Asian region stayed healthy and limited imports surged the price trend. In this quarter, China had expanded its pipeline gas imports from Russia, which expanded the import volume due to speeding up requests in the territorial market. PetroChina expanded LNG imports utilizing the Power of Serbia pipeline to meet China’s winter demand.
For the Quarter Ending September 2021