First Quarter of 2023 in Europe Natural Gas Prices
North America
In Q1 2023, the Natural Gas
Prices in the US showcased a bearish price trend in the succeeding
months. Falling Henry Hub Natural Gas cost with declining dry Natural Gas
production came about in slow than-anticipated growth in US Natural Gas
production. On 22nd Feb, the Freeport LNG exports terminal came into a function
but unexpectedly canceled some cargoes due to a problem with one of its three
liquefaction trains, raising fears that operations might take longer than
expected. In March, the price of Natural Gas in the USA declined to USD 2.45
per MMBtu Ex-Louisiana. The trade volume of Natural Gas shrunk this quarter,
which affected the profit margin and sales among the significant producers.
Asia Pacific
Prices continued to follow a
declining trend with limited consumption and adequate product inventories. In
China, the Natural Gas price slumped to its lowest during March 2023 with the
price trend of 2.48/MMBtu Ex-Shanghai. China's import of Liquefied
Natural Gas Prices drooped as the region sloped up domestic
production, and pipeline imports brought about product stockpiling.
Unexpectedly mild weather and adequate product in storage volumes constrained
the producers to bring down their cost pattern this quarter. The decline in
Natural Gas consumption from downstream power generation and heating equipment
has also adversely affected the price trend. In Feb 2023, the momentum in
trading of Natural Gas markets swung away from Europe and back to Asia;
however, the unobtrusive increase in demand was not sufficient to elevate spot
costs.
Europe
The Natural Gas prices remained
on the lower end this quarter, with weak benchmark futures for February and
March 2023. Towards the end of the quarter, Gas storage tanks in Europe were
56% full and were being used by downstream industries. Industries started to
increase the consumption of Natural Gas, indicating which indicated a promising
sign that petrochemical ventures are stepping up their demand. Nevertheless,
the recovery in the industrial production units was slow. In March 2023, the
price of Natural Gas in Germany slipped to Euro 44.31/ MW-hr. The demand for
Natural Gas from the downstream power generation and heating equipment
declined, and the European market players struggled with adequate inventories
and increasing costs for storage containers.
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