![]() ![]() In Asia, LNG demand trends have been mixed with Japan particularly weak. ![]() Ample inventories mean less demand for refilling storage, which has put pressure on prices. In Europe, natural gas storage exiting winter was 55.7% full – a record high for March 31. The Japan/Korea LNG price marker peaked near $70 per MMBtu.Īs shown in the chart below, a warm winter quickly sent prices back to earth. European LNG prices topped out above $90 per million British thermal unit (MMBtu) in August 2022. The unexpected, extended outage at Freeport LNG’s Texas facility following a fire on Jalso put upward pressure on prices. Global LNG prices spiked in 2022 following Russia’s invasion of Ukraine as Europe scrambled to replace Russian volumes and fill up storage ahead of winter. ET, “Energy Infrastructure Beyond Natural Gas: LNG and NGLs.” Register here. Today’s note discusses the weakness in LNG markets in 2023, US export projects under development, and the positive implications from growing US LNG export capacity.įor more on LNG and ways midstream companies participate, please join our next 30-minute LiveCast on July 10 at 12:30 p.m. Despite a challenging landscape, US LNG export projects continue to see positive progress with multiple facilities starting construction this year. Contracts to purchase LNG well into the 2040’s reinforces a positive long-term view for US natural gas production and global LNG demand.Ī warm winter and a sluggish global economy have put a damper on LNG prices in 2023.This provides visibility to meaningful LNG export capacity growth in the US and opportunities for midstream. Despite market weakness, a handful of US projects have either begun construction or are nearing the start of construction.A warm winter and mixed demand from Asia have weighed on global LNG prices in 2023 after a standout 2022.VettaFi discusses LNG market weakness in 2023 and the positive takeaways from US LNG projects continuing to advance.
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