Natural Gas News – February 15, 2022

Fixed price transactions see hefty premiums in LNG spot market

Spot LNG buyers are paying hefty premiums when requesting for fixed price offers in their transactions in view of the recent volatility in LNG and gas markets, market sources said. Several buy tenders that were concluded lately, including those of PTT, Japex, and Komipo, were reportedly awarded with considerable premiums due to their requirement of fixed price basis offers in the tender process. Sources
said that sellers would typically attach such premiums to their fixed price offers to buffer for slippage – the risk of market prices moving higher or lower than expected when the trade is executed, from when the offer or bid is submitted. A Guangdong-based buyer also observed that fixed price basis offers in the bilateral market were few to none, “so we are hesitating to buy on fixed price basis and considering … For more info go to https://bit.ly/3GSU2cO

Europe relies primarily on imports to meet its natural gas needs

Imports of natural gas by both pipeline and as liquefied natural gas (LNG) provided more than 80% of the supply of natural gas to the
countries of the European Union (EU-27) and the United Kingdom (UK) in 2020, up from 65% a decade earlier. During 2020, natural gas imported into the region by pipeline made up 74% of all natural gas imports, and LNG accounted for the remaining 26% of total imports. Pipeline imports of natural gas into the region come from Russia, Norway, North Africa, and Azerbaijan. Pipeline imports originating in Russia—the largest supplier in the region—grew from about 11 billion cubic feet per day (Bcf/d) in 2010 to more than 13 Bcf/d in 2020 (a low consumption year due to COVID-19 related impacts). Despite construction of new pipelines, imports from Norway averaged aro… For more info go to https://bit.ly/3gDVXY4