LNG delivered to Europe is at its lowest price in two years

As the heating season draws to a close, demand for liquefied natural gas (LNG) is falling on the global market, along with its price. In Europe, unusually high levels of gas in underground storage facilities, comparable only to those of the COVID year 2018, have also pushed prices on local markets down in recent weeks. As a result, the spot price of LNG has fallen below EUR 30/MWh in recent days, its lowest level in almost two years.

Although just a few months ago natural gas prices on European markets were still several times higher than in previous years, the situation has changed dramatically in recent weeks. Thanks to a relatively warm winter, stable natural gas supplies via pipelines from Norway, North Africa and other regions, as well as strong LNG deliveries, gas stocks in European storage facilities remained at unusually high levels at the end of winter

Falling natural gas demand across all the largest consumption regions—not only Europe, but also Asia and North America—has caused a sharp drop in gas prices on the global market. Data from Spark Commodities cited by Montel showed that by the end of last week, the spot price for LNG delivered to terminals in north-western Europe (DES NWE) had fallen to 9.4 dollars per MMBtu, or around EUR 29/MWh. According to the company, LNG prices last reached such low levels in June 2019.