In this list
LNG | Natural Gas

European LNG at 18-month low on Freeport reopening

Crude Oil | Natural Gas | Natural Gas (North America) | Upstream

Platts Upstream Indicator

Refined Products | Fuel Oil | Shipping | Bunker Fuel | Containers | Marine Fuel

The wait is (still) on at the Panama Canal

Oil | Energy Transition | Energy

APPEC 2024

Natural Gas | Coal | Electric Power | Energy Transition | Electric Power Electricity | Renewables

COP28: Pledge to triple renewables by 2030 'ambitious but achievable'

Energy | LNG

Platts LNG freight assessments

Metals | Energy Transition | Coal | Natural Gas | LNG | Shipping | Electric Power | Ferrous | Hydrogen | Metallurgical Coal | Steel | Non-Ferrous | Electric Power Electricity | Renewables | Emissions

Commodity Tracker: 5 charts to watch this week

For full access to real-time updates, breaking news, analysis, pricing and data visualization subscribe today.

Subscribe Now

European LNG at 18-month low on Freeport reopening

  • Author
  • Sammy Rolls
  • Editor
  • Daniel Lalor
  • Commodity
  • LNG Natural Gas
  • Tags
  • United States

European LNG prices have fallen to an 18-month low with returning Freeport volumes adding further bearish sentiment to the market.

Not registered?

Receive daily email alerts, subscriber notes & personalize your experience.

Register Now

Platts, part of S&P Global Commodity Insights, assessed Northwest European delivered LNG at $14.823/MMBtu on Feb. 13, the lowest since Aug. 23, 2021, when the assessment was made at $14.709/MMBtu.

Freeport LNG exported its first cargo Feb. 12 since an explosion and fire shut the US facility last June, meaning an already well supplied European market may soon see additional US cargoes, likely to put pressure on prices.

Freeport can export 16-19 LNG cargoes per month when operating normally, according to market sources.

Europe has also been experiencing increased supply from North Africa recently, specifically Egypt.

The Egyptian Gas Holding Company (Egas) has issued sell tenders for nine LNG cargoes in 2023 after 54 cargoes in 2022, up from around 26 in 2021, S&P Global data showed.

Related content: Changing places: Shifting participation and growing intervention in LNG markets

European prices had already been under pressure amid a reduction in demand for spot cargoes during early 2023.

Milder than average winter weather and earlier demand destruction from industrial consumers have led to reduced gas consumption.

Eight European countries recorded all-time temperature highs for January, according to data from the BBC. That drove down heating demand and slowed the rate at which gas stocks were drawn.

Meanwhile, high stock levels have also been able to satiate any excess demand above that from contractual LNG cargoes and natural gas pipeline flows. That has caused demand for LNG spot cargoes to dry up.

Europe's gas storage levels remain high, at 66.1% as of Feb. 12, according to the Aggregated Gas Storage Inventory (AGSI). Gas storage levels were at 32.7% this time last year.

While immediate European has been subdued, some sources were expecting some level of price rebound in the near term with the main question being around the scope for a return of Chinese demand.

"Prices are nearing the bottom but there may yet be lower levels in the days to come," a Europe-based LNG trader said.