Natural gas prices in Europe began to stabilize at the end of April amid a decline in spot quotations and a slowdown in gas injection into underground storage. Spot prices on the Dutch TTF exchange fell from $375 to $358 per 1,000 m³ from April 17 to 23, returning to mid-month levels. A slight increase at the end of last week was caused by an emergency shutdown at one of the Norwegian offshore fields.
This is reported by Business • Media
According to AGSI+, as of April 18, the filling level of underground storage in Europe was 36.4%, slightly above the 34.6% recorded on April 4. The lack of active gas injection reduces demand and restrains price growth. At the same time, gas consumption in the industry has decreased due to the overall cooling caused by tariff initiatives from the United States, particularly regarding the European Union. During the period from January to March, steel production in the EU fell by 2.5% compared to last year, totaling 32.4 million tons; however, in March, the decline halted, and the annual increase was 0.2%, reaching 11.7 million tons.
Increase in LNG Supply and Its Impact on Prices
The expansion of liquefied natural gas (LNG) supplies from the United States is contributing to price reductions. On April 15, Venture Global launched the second phase of the Calcasieu Pass plant in Louisiana into commercial operation, with a capacity of 2 million tons of LNG per year. Spot gas prices on the New York NYMEX exchange fell by $15 from April 14 to 23, reaching $109 per 1,000 m³. Stocks in American underground storage increased by 45 million m³ in the first half of April, totaling 52.27 billion m³. As in Europe, the rates of gas injection after the heating season remain low, and consumption in the industry continues to decline. Steel production in the U.S. decreased by 0.6% in the first quarter compared to last year, amounting to 19.7 million tons, and in March, it fell by 1.5% to 6.7 million tons.
LNG Prices in Asia and Their Influence
Liquefied natural gas (LNG) prices in Asia rose from $394 to $429 per 1,000 m³ from April 14 to 17, according to data from the Tokyo Commodity Exchange. This increase was triggered by emergency shutdowns of unloadings at several terminals, including the Malaysian Bintulu. At the same time, in the European Union, industrial production, adjusted for seasonal variations, increased by 1% in February compared to the previous month, while in the eurozone, it rose by 1.2% month-on-month and by 1.2% compared to February 2024. This indicates a gradual recovery of the industrial sector in the region.