https://d1io3yog0oux5.cloudfront.net/_1 ... .21_v3.pdf
note page 5:, q2 38.71 vs 15.55 last year
AR weekly lpg pricing
lpg pricing (AR)
Prices are climbing to highest of year to Europe and UK. Higher profits drives our exports.
Cargoes of liquefied natural gas were still the subject of high prices in North Asia and Europe as the Japan-Korea Marker for spot cargoes hit the $10 per million British thermal units mark while European benchmark LNG values increased to their highest in 2021.
The total number of LNG shipments being lifted this week in the Pacific Basin, the Atlantic Basin and the Arab Gulf region was expected to be around 103, slightly lower than last week.
Spot market buyers were still active in Asia while European prices rose on lower stocks and colder weather. Demand was also solid in North Asia with the June JKM spot cargo price increasing to $9.125 per MMBtu, up from last week’s $9.060 per MMBtu.
The July JKM cargo quote jumped even higher to $10.225 per MMBtu compared with last week’s $9.775 per MMBtu, while the August JKM was quoted at $10.275 per MMBtu versus $9.775 per MMBtu a week ago.
The UK National Balancing Point natural gas price and the Continental European benchmark, the Dutch Title Transfer Facility (TTF) price, reached their highes levels so far in 2021.
The NBP increased again to $9.40 per MMBtu on May 14, up from last week’s $8.65 per MMBtu because of wholesale gas storage demand and unseasonal weather.
The Dutch TTF also moved up to the equivalent of $9.35 per MMBtu versus $8.55 per MMBtu a week ago.
In the spot delivered ex-ship (DES) LNG cargoes market for India and the Middle East region, the West India Marker (WIM) price edged higher to $8.552 per MMBtu for June, up from $8.486 a week ago.
India continued to be hit by a Covid-19 crisis in major cities and in the countryside, though only some state lockdowns were in force and fuel prices were up.
The July West India Marker price jumped to $9.550 per MMBtu from $8.533 per MMBtu a week ago and August hit the $9.600 per MMBtu mark, also from $8.533 per MMBtu, on anticipated medium-term demand.
These India-Gulf prices cover LNG spot physical shipments delivered ex-ship (DES) into ports in India, Dubai and Kuwait and covering cargoes in the range of 135,000-175,000 cubic metres capacity.
In the oil and commodities markets, analysts in Europe and Asia said a vision emerged of “Venezuela USA” this week with lines at gasoline pumps and a back-up of almost 800 barges on the Mississippi River because cracks were discovered on a bridge near Memphis in Tennessee and closed the waterway that is crucial to US oil, grain and commodities exports and supplies.
The North Sea Brent crude oil price dropped 3 percent to $66.81 per barrel on May 14, down from $68.53 per barrel a week ago as US energy and export woes managed to offset actual conflict in the Middle East in fighting between Israel and the Hamas group in Gaza.
At current Brent oil price levels, the long-term, crude-linked LNG price was at around $8.95 per MMBtu.
US data
The US exported 21 LNG cargoes in the past week, one less than the previous week, with a combined LNG-carrying capacity of 74 billion cubic feet, according to the US Energy Information Administration.
Seven cargoes were lifted from the Sabine Pass plant in Louisiana, four each from Corpus Christi and the Freeport facility in Texas, three from the Cameron plan in Louisiana, two from Cove Point in Maryland and one from Elba Island in Georgia.
“Natural gas deliveries to US LNG export facilities (LNG pipeline receipts) averaged 11.0 billion cubic feet per day, about the same level as last week,” added the EIA.
The EIA noted that US pipeline natural gas exports to Mexico increased by 4.7 percent to 6.2 Bcf per day.
US Gulf Coast LNG futures prices jumped compared with last week and showed continued demand for cargoes.
The June GCL FOB price increased to $7.758 per MMBtu, up from $7.390 per MMBtu. The July US FOB cargo quote was $7.700 per MMBtu versus $7.362 per MMBtu last week. The August GCL FOB was quoted at $7.742 per MMBtu versus last week’s $7.378 per MMBtu.
The US Henry Hub benchmark spot natural gas price declined on the week to $2.87 per MMBtu compared with $2.89 per MMBtu a week ago.
The New York Mercantile Exchange, front-month natural gas futures price edged higher to $2.970 per MMBtu versus $2.930 per MMBtu.
US net injections into storage totaled 71 Bcf for the week compared with the five-year (2016-2020) average net injections of 82 Bcf and last year's net injections of 104 Bcf during the same week.
“Working natural gas stocks totaled 2,029 Bcf, which is 72 Bcf lower than the five-year average and 378 Bcf lower than last year at this time,” said the EIA.
The dollar, the base currency in energy, weakened against the euro. In April 2020 one US dollar bought you €0.93 cents in Europe. The dollar was able to be exchanged for €0.82 on May 14 down on €0.83 last week.
Global liftings
In the LNG shipping market, data showed that there would be around 103 cargo liftings in the week through Sunday May 16 from producing nations in the Pacific Basin, the Atlantic Basin and the Arab Gulf region. This is lower than the previous week's 108 liftings.
The Pacific Basin will account for around 44 shipments in the week to May 16, including 20 from Australia, around 10 from Malaysia and five from Indonesia, and at one or two each from several other plants including Papua New Guinea, Brunei, the Pampa Melchorita facility on the Pacific Coast of Peru.
Around four liftings are scheduled from Gazprom’s Sakhalin Island plant in the Russian Far East.
In the Atlantic Basin there are scheduled to about 34 liftings, including 16 departures from the US in the week through May 16.
Five shipments are departing from Nigeria, four from Algeria, two from Trinidad, one from Equatorial Guinea one from Egypt’s Damietta plant and seven from the Russian Arctic Yamal plant.
A further 25 cargoes were scheduled to depart from the Arab Gulf region in the week through May 16, mostly from Qatar but also including four headed for Asia from Oman and three from Abu Dhabi’s Das Island plant in the United Arab Emirates.
Shipping charter rates for LNG carriers in the spot market were still at high levels of up to $77,000 per day for West of Suez and $72,000 per day East of Suez, according to London brokerages.
UK market data
Natural gas pipeline supply to the UK market dropped on the morning of May 14. Data from National Grid showed that instantaneous pipeline flows from the North Sea declined to 219.60 million cubic metres of supply from 233.14 mcm of flows in the same period last week.
That’s as UK domestic gas demand also dropped to 187.75 mcm of flows compared with last week’s 262.69 mcm.
Supply flows on May 14 at gas grid connections near the UK’s two LNG terminals at Milford Haven in Wales, South Hook LNG and Dragon LNG, declined to 26.94 mcm (28.15 mcm May 7).
The pipeline flows near the Isle of Grain LNG terminal on the shore of the Thames-Medway estuary, southeast of London, rose to 17.59 mcm (8.16 mcm).
North Sea pipeline gas supply flowing to the St Fergus terminal in northern Scotland increased to 35.03 mcm (28.15 mcm).
Flows declined to 30.55 (41.52 mcm) to terminals at Bacton in Norfolk on the East Coast of England as one facility was closed.
The Easington terminal on the Yorkshire coast was receiving lower flows of 70.90 mcm (77.59 mcm) while flows to the Teesside terminal rose to 25.25 mcm (12.98 mcm).
National Grid data also showed that through May 12 natural gas provided the main proportion of the UK’s energy mix for power generation, amounting to 46.6 percent of the total.
Other UK power sources on that date comprised nuclear 13.7 percent, imports 12.0 percent, wind 11.4 percent, biomass (wood) 7.2 percent, solar 5.6 percent, coal 1.8 percent and hydro 1.7 percent.
Pipeline flows
to EU
Pipeline natural gas flows from Norway on the morning of May 14 to the European Union increased. Supply levels were up for main pipelines to Germany, Belgium and France.
The flows to the German terminal at Emden increased to 81.9 mcm compared with 79.7 mcm at the same time last week, while pipeline flows through Germany’s Dornum terminal rose to 51.9 mcm from last week’s 48.2 mcm.
The Zeebrugge (Belgium) flow was also higher at 34.0 mcm (25.9 mcm), while pipeline flows to Dunkirk (France) reached 41.7 mcm (32.8 mcm), according to data from the Norwegian pipeline network and terminals operator Gassco.
The Norwegian aggregated (including UK) exit flows on May 14 rose to 297.1 mcm compared with 286.3 mcm of flows a week ago.
Cargoes of liquefied natural gas were still the subject of high prices in North Asia and Europe as the Japan-Korea Marker for spot cargoes hit the $10 per million British thermal units mark while European benchmark LNG values increased to their highest in 2021.
The total number of LNG shipments being lifted this week in the Pacific Basin, the Atlantic Basin and the Arab Gulf region was expected to be around 103, slightly lower than last week.
Spot market buyers were still active in Asia while European prices rose on lower stocks and colder weather. Demand was also solid in North Asia with the June JKM spot cargo price increasing to $9.125 per MMBtu, up from last week’s $9.060 per MMBtu.
The July JKM cargo quote jumped even higher to $10.225 per MMBtu compared with last week’s $9.775 per MMBtu, while the August JKM was quoted at $10.275 per MMBtu versus $9.775 per MMBtu a week ago.
The UK National Balancing Point natural gas price and the Continental European benchmark, the Dutch Title Transfer Facility (TTF) price, reached their highes levels so far in 2021.
The NBP increased again to $9.40 per MMBtu on May 14, up from last week’s $8.65 per MMBtu because of wholesale gas storage demand and unseasonal weather.
The Dutch TTF also moved up to the equivalent of $9.35 per MMBtu versus $8.55 per MMBtu a week ago.
In the spot delivered ex-ship (DES) LNG cargoes market for India and the Middle East region, the West India Marker (WIM) price edged higher to $8.552 per MMBtu for June, up from $8.486 a week ago.
India continued to be hit by a Covid-19 crisis in major cities and in the countryside, though only some state lockdowns were in force and fuel prices were up.
The July West India Marker price jumped to $9.550 per MMBtu from $8.533 per MMBtu a week ago and August hit the $9.600 per MMBtu mark, also from $8.533 per MMBtu, on anticipated medium-term demand.
These India-Gulf prices cover LNG spot physical shipments delivered ex-ship (DES) into ports in India, Dubai and Kuwait and covering cargoes in the range of 135,000-175,000 cubic metres capacity.
In the oil and commodities markets, analysts in Europe and Asia said a vision emerged of “Venezuela USA” this week with lines at gasoline pumps and a back-up of almost 800 barges on the Mississippi River because cracks were discovered on a bridge near Memphis in Tennessee and closed the waterway that is crucial to US oil, grain and commodities exports and supplies.
The North Sea Brent crude oil price dropped 3 percent to $66.81 per barrel on May 14, down from $68.53 per barrel a week ago as US energy and export woes managed to offset actual conflict in the Middle East in fighting between Israel and the Hamas group in Gaza.
At current Brent oil price levels, the long-term, crude-linked LNG price was at around $8.95 per MMBtu.
US data
The US exported 21 LNG cargoes in the past week, one less than the previous week, with a combined LNG-carrying capacity of 74 billion cubic feet, according to the US Energy Information Administration.
Seven cargoes were lifted from the Sabine Pass plant in Louisiana, four each from Corpus Christi and the Freeport facility in Texas, three from the Cameron plan in Louisiana, two from Cove Point in Maryland and one from Elba Island in Georgia.
“Natural gas deliveries to US LNG export facilities (LNG pipeline receipts) averaged 11.0 billion cubic feet per day, about the same level as last week,” added the EIA.
The EIA noted that US pipeline natural gas exports to Mexico increased by 4.7 percent to 6.2 Bcf per day.
US Gulf Coast LNG futures prices jumped compared with last week and showed continued demand for cargoes.
The June GCL FOB price increased to $7.758 per MMBtu, up from $7.390 per MMBtu. The July US FOB cargo quote was $7.700 per MMBtu versus $7.362 per MMBtu last week. The August GCL FOB was quoted at $7.742 per MMBtu versus last week’s $7.378 per MMBtu.
The US Henry Hub benchmark spot natural gas price declined on the week to $2.87 per MMBtu compared with $2.89 per MMBtu a week ago.
The New York Mercantile Exchange, front-month natural gas futures price edged higher to $2.970 per MMBtu versus $2.930 per MMBtu.
US net injections into storage totaled 71 Bcf for the week compared with the five-year (2016-2020) average net injections of 82 Bcf and last year's net injections of 104 Bcf during the same week.
“Working natural gas stocks totaled 2,029 Bcf, which is 72 Bcf lower than the five-year average and 378 Bcf lower than last year at this time,” said the EIA.
The dollar, the base currency in energy, weakened against the euro. In April 2020 one US dollar bought you €0.93 cents in Europe. The dollar was able to be exchanged for €0.82 on May 14 down on €0.83 last week.
Global liftings
In the LNG shipping market, data showed that there would be around 103 cargo liftings in the week through Sunday May 16 from producing nations in the Pacific Basin, the Atlantic Basin and the Arab Gulf region. This is lower than the previous week's 108 liftings.
The Pacific Basin will account for around 44 shipments in the week to May 16, including 20 from Australia, around 10 from Malaysia and five from Indonesia, and at one or two each from several other plants including Papua New Guinea, Brunei, the Pampa Melchorita facility on the Pacific Coast of Peru.
Around four liftings are scheduled from Gazprom’s Sakhalin Island plant in the Russian Far East.
In the Atlantic Basin there are scheduled to about 34 liftings, including 16 departures from the US in the week through May 16.
Five shipments are departing from Nigeria, four from Algeria, two from Trinidad, one from Equatorial Guinea one from Egypt’s Damietta plant and seven from the Russian Arctic Yamal plant.
A further 25 cargoes were scheduled to depart from the Arab Gulf region in the week through May 16, mostly from Qatar but also including four headed for Asia from Oman and three from Abu Dhabi’s Das Island plant in the United Arab Emirates.
Shipping charter rates for LNG carriers in the spot market were still at high levels of up to $77,000 per day for West of Suez and $72,000 per day East of Suez, according to London brokerages.
UK market data
Natural gas pipeline supply to the UK market dropped on the morning of May 14. Data from National Grid showed that instantaneous pipeline flows from the North Sea declined to 219.60 million cubic metres of supply from 233.14 mcm of flows in the same period last week.
That’s as UK domestic gas demand also dropped to 187.75 mcm of flows compared with last week’s 262.69 mcm.
Supply flows on May 14 at gas grid connections near the UK’s two LNG terminals at Milford Haven in Wales, South Hook LNG and Dragon LNG, declined to 26.94 mcm (28.15 mcm May 7).
The pipeline flows near the Isle of Grain LNG terminal on the shore of the Thames-Medway estuary, southeast of London, rose to 17.59 mcm (8.16 mcm).
North Sea pipeline gas supply flowing to the St Fergus terminal in northern Scotland increased to 35.03 mcm (28.15 mcm).
Flows declined to 30.55 (41.52 mcm) to terminals at Bacton in Norfolk on the East Coast of England as one facility was closed.
The Easington terminal on the Yorkshire coast was receiving lower flows of 70.90 mcm (77.59 mcm) while flows to the Teesside terminal rose to 25.25 mcm (12.98 mcm).
National Grid data also showed that through May 12 natural gas provided the main proportion of the UK’s energy mix for power generation, amounting to 46.6 percent of the total.
Other UK power sources on that date comprised nuclear 13.7 percent, imports 12.0 percent, wind 11.4 percent, biomass (wood) 7.2 percent, solar 5.6 percent, coal 1.8 percent and hydro 1.7 percent.
Pipeline flows
to EU
Pipeline natural gas flows from Norway on the morning of May 14 to the European Union increased. Supply levels were up for main pipelines to Germany, Belgium and France.
The flows to the German terminal at Emden increased to 81.9 mcm compared with 79.7 mcm at the same time last week, while pipeline flows through Germany’s Dornum terminal rose to 51.9 mcm from last week’s 48.2 mcm.
The Zeebrugge (Belgium) flow was also higher at 34.0 mcm (25.9 mcm), while pipeline flows to Dunkirk (France) reached 41.7 mcm (32.8 mcm), according to data from the Norwegian pipeline network and terminals operator Gassco.
The Norwegian aggregated (including UK) exit flows on May 14 rose to 297.1 mcm compared with 286.3 mcm of flows a week ago.