LNG prices in Rotterdam have significantly decreased to $1,496 per ton. This drop compared to last week, when prices were around $1,731 per ton, indicates a reduction of $235 per ton in the market. At the same time, TTF prices have also decreased to $28.77 per MMBtu.
Political Impacts on the LNG Market
The drop in prices in Rotterdam is clearly influenced by political decisions. On November 2, cautious remarks by Donald Trump, the President of the United States, regarding the resumption of military attacks on Iran caused TTF prices to plummet. This trend continued, and it seems that the results of the U.S. midterm elections have also bolstered hopes for an end to the war in the Middle East. According to the Japan Oil, Gas and Metals National Corporation (JOGMEC), these issues have significantly impacted the LNG market.
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Gas Storage Status in the European Union
Gas storage in the European Union has reached 73% of its capacity, indicating a 2% decrease compared to last week. This is while gas storage is 13% lower than last year. The underground gas in the European Union could reach 7% of its capacity if the Strait of Hormuz remains closed and severe winter conditions persist. According to gas analyst Greg Molnar from the International Energy Agency (IEA), this situation could lead to a need for larger injections next summer.
In other LNG market news, LNG prices in Singapore have also sharply decreased, with its benchmark reaching $1,637 per ton. This drop has caused the LNG premium in Singapore compared to JKM to decrease by $110 per ton. These changes are due to intense competition among suppliers at the Singapore port and LNG locations in China.
According to JOGMEC, demand from Asian users for spot cargoes has been very low throughout the week, and transactions have significantly decreased.
American company Excelerate Energy has announced that it will supply AxDo Bahamas, a small-scale LNG and bunkering project, with approximately 307,000 tons of LNG per year. This contract will last for 11 years, with the first deliveries taking place next year.
Additionally, Sawgrass LNG & Power has successfully delivered about 143 tons of LNG to a cruise ship at the Port of Fort Lauderdale in Everglades. Finally, Finnish company Wärtsilä has successfully modified the performance of one of the engines on three LNG vessels operated by Chevron Transport, which experts say has resulted in a 1.1% reduction in methane emissions from fuel consumption.
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