A roundup of news and commentary from NGI’s LNG Insight

  • European carbon credits hit $37.57 this week, a high not seen since 2006, according to EBW Analytics Group. “Increases in carbon prices in the European Union are bullish for natural gas in the U.S., since the impact on coal-fired generators in Europe is twice as great as the impact on gas-fired plants, allowing gas-fired plants in Europe to pay higher prices for natural gas and still be dispatched, expanding the available market for U.S. LNG,” EBW said. 
  • The rise in carbon costs and soaring natural gas prices in North Asia that are siphoning cargoes from Europe has lifted benchmark prices on the continent this week. 
  • Liquefaction outages and maintenance worldwide have driven LNG supply shortages heading into the winter heating season, specifically in the Pacific Basin, driving Japan Korea Marker strength, according to BofA Global Research analysts. Spot prices were around $11.00/MMBtu on Friday. But BofA expects the February JKM contract, currently trading at $9.20, to fall back toward $7.00 “as more supply arrives.”