LNG market

Power sector switching, gas hub prices & volatility | 20 Mar, 2017

In early 2016, the idea of a significant recovery in CCGT load factors at the expense of coal plants was treated with a degree of scepticism. CCGT loa ...

US export flows, the supply glut and Europe | 13 Mar, 2017

The Sabine Pass terminal exported its first cargo in Feb 2016.  This marked the start of a new era of US gas exports, an almost unthinkable developme ...

Relative pricing dynamics driving European gas hubs | 27 Feb, 2017

A number of interesting dynamics have emerged in the European gas market over the last twelve months. On the supply side, relatively low LNG import ...

Winter LNG spot price volatility | 20 Feb, 2017

Global LNG spot prices have been relatively subdued over the past two winters.  Increases in global liquefaction capacity and weaker demand have kept ...

5 surprises for 2017 | 30 Jan, 2017

Our list of surprises for 2016 focused on changing energy market price dynamics. In Q1 2016, cyclically depressed conditions in a number of markets su ...

The impact of LNG imports on hub price volatility | 23 Jan, 2017

After 5 tough years, a glimmer of hope emerged for gas storage operators in 2016. Spot price volatility at European hubs started to show signs of a mo ...

Progressing up the mountain of LNG | 16 Jan, 2017

The LNG market is in the earlier stages of an unprecedented ramp up in supply. Global liquefaction capacity is set to rise by more than 50% by 2022. 2 ...

Revisiting our 5 surprises for 2016 | 12 Dec, 2016

‘We are fairly confident of one thing.  2016 will not be a dull year.’ This was our concluding statement from an article published on the Feb ...

Global gas price convergence: state of play | 28 Nov, 2016

A cold start to the northern winter is breathing some life back into global gas prices. There has been some excitement this month as Asian spot LNG pr ...

Asian demand response to lower LNG prices | 14 Nov, 2016

The Economics 101 textbook tells us that ‘if prices fall, demand should rise… all other things being equal’. It is an unfortunate reality of the ...

The impact of rising coal prices | 17 Oct, 2016

2016 has delivered its fair share of commodity market surprises. But none have been more unexpected than the sharp recovery in coal prices.  European ...

Gas rebalancing 2: the path to price recovery | 10 Oct, 2016

The first half of this decade saw an LNG investment boom.  High gas prices and optimistic Asian demand projections supported a flood of Financial Inv ...

Gas rebalancing 1: Clearing the global gas glut | 03 Oct, 2016

The global gas market has been shocked by the pace and scale of transition from boom to bust. At the beginning of 2014 suppliers were paying a lofty 2 ...

Utility asset sales: where are the value opportunities? | 18 Jul, 2016

The article below is our last before the summer break.  We will be back with more in late August. Three weeks ago we set out the case for an unpre ...

LNG imports & European gas pricing dynamics | 27 Jun, 2016

The role of LNG imports into Europe is changing as the result of an oversupplied global gas market. Higher LNG flows into Europe are set to erode the ...

Has the 2016 commodity price recovery got legs? | 13 Jun, 2016

Crude oil has doubled in price since February.  The rally in oil has coincided with a broader recovery in global commodity prices including coal.  H ...

Gas vs coal switching in Europe: numerical analysis | 06 Jun, 2016

Over the 2016-19 period, LNG liquefaction capacity under construction is set to increase global LNG supply by approximately 150 bcma. Current rates of ...

Gas vs coal switching in Europe: key markets | 30 May, 2016

The displacement of coal plant by gas plant is one of the key current focus issues in the European energy industry.  A sharp decline in coal prices f ...

US exports and the trans-Atlantic cost question | 16 May, 2016

The costs of moving LNG from the US to Europe was one of the key focus points at last week’s Flame conference.  A number of divergent views were pr ...

What does Henry Hub convergence mean? | 09 May, 2016

Prices at the UK NBP and US Henry Hub converged completely during the last global supply glut in 2009-10. This was a simple consequence of global over ...

Anatomy of a spring short squeeze | 02 May, 2016

Last week saw some extreme swings in European gas hub prices. The combination of an early spring cold snap and North Sea supply outages caused the NBP ...

European gas market: current supply & demand balance | 25 Apr, 2016

The next two years are set to be an important period of transition for the European gas market. LNG imports are increasing as Europe adapts to its ro ...

European LNG imports on the rise | 18 Apr, 2016

The post-Fukushima Asian LNG price premium saw European LNG imports fall by more than 50% across the 2011 to 14 period. In 2011, the year of the Fukus ...

Summer gas price pressure & the storage overhang | 04 Apr, 2016

Gas storage facilities have traditionally been the seasonal balancing force in the European gas market.  Across the EU-28 countries there is around 9 ...

A revival in contracting of flexible assets | 21 Mar, 2016

Long term contracts are a cornerstone of the energy industry. They play a key role in underpinning the capital expenditure required to develop assets. ...