NGI - For First Time in New Year, February Natural Gas Futures Eclipse $4

January 10, 2022 – Natural Gas Intelligence

For First Time in New Year, February Natural Gas Futures Eclipse $4

By: Kevin Dobbs

What’s more, U.S. LNG feed gas volumes held above 12 Bcf to start the week – near full capacity and within striking distance of recent records – reflecting solid demand from Asia and Europe. Both continents have entered the heart of winter. Europe, in particular, is light on supplies following extreme weather and robust demand in 2021. Modest flows of gas from Russia because of political strife between that country and Ukraine have compounded supply challenges for Europe.

Global natural gas prices “remain incredibly strong compared to years past and the economics for U.S. LNG exports are riding high,” said RBN Energy LLC analyst Lindsay Schneider.

“Much of the record feed gas demand has been from commissioning activity at Sabine Pass Train 6, which produced its first LNG in December and is on track to begin full service early this year,” Schneider added in a report Monday. “But beyond that, operators have been pushing the existing fleet of terminals to operate at peak levels and produce additional cargoes, likely for sale in the spot market or on short-term contract, an extremely profitable endeavor given the prices in Europe, where most if not all destination-flexible cargoes have headed.”

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