In the News:
Global trade in liquefied natural gas increased by 5% in 2022
In 2022, global trade in liquefied natural gas (LNG) increased by 2.6 billion cubic feet per day (Bcf/d), or 5% compared with 2021, and averaged 51.7 Bcf/d, according to data from CEDIGAZ. Growth in global LNG trade was supported by liquefaction capacity additions, primarily in the United States, and increased LNG demand in Europe as LNG continued to displace pipeline natural gas imports from Russia.
Similar to previous years, LNG exports in 2022 increased the most from the United States, growing by 1.4 Bcf/d (16%) compared with 2021. In the first half of 2022, the United States became the world’s largest LNG exporter for the first time, after the new Calcasieu Pass LNG export facility was commissioned. However, because of the shutdown of the Freeport LNG export terminal, U.S. LNG exports declined in the second half of the year. In 2022, Qatar and Australia remained the top two global LNG exporters; Qatar’s exports averaged 10.5 Bcf/d, and Australia’s exports averaged 10.4 Bcf/d.
LNG exports also increased from Malaysia, Norway (after Hammerfest LNG returned to service), Trinidad and Tobago, Russia, Oman, and Equatorial Guinea by a combined 1.3 Bcf/d. In North Africa, LNG exports from Algeria and Nigeria decreased by a combined 0.5 Bcf/d, as these countries continued to experience issues with domestic natural gas production, which is used as a feedstock to LNG export facilities.
Among LNG-importing regions, Europe (including Türkiye) posted the largest increase in LNG imports globally, increasing by 65% (6.5 Bcf/d) compared with 2021. LNG imports declined by 9% (3.2 Bcf/d) in Asia and by 34% (0.8 Bcf/d) in Latin America compared with 2021.
LNG imports into EU-27 countries and the UK increased substantially in 2022—by 73% (6.3 Bcf/d) compared with 2021—replacing imports by pipeline from Russia. Five countries—France, the UK, Spain, the Netherlands, and Belgium— increased LNG imports by a combined 5.4 Bcf/d, accounting for 85% of the total increase.
In 2022, Japan returned as the world’s largest LNG importer—the title it held for over 50 years until 2021—retaking the top spot from China. Although LNG imports into Japan declined last year by 3% (0.3 Bcf/d), averaging 9.5 Bcf/d, imports into China declined by 20%, in part because of zero-COVID policies, increased imports by pipeline from Russia, and higher use of coal. Other Asian countries, particularly those more reliant on global LNG spot markets, reduced spot purchases because of record-high LNG prices last year. LNG imports into India, Pakistan, and Bangladesh declined by a combined 18% (0.9 Bcf/d) in 2022 compared with 2021.
In Latin America, Brazil had the largest decrease in LNG imports—by 70% (0.6 Bcf/d)—mainly because more electricity was generated by hydropower, reducing demand for natural gas-fired electricity generation in 2022 compared with 2021.
Market Highlights:
(For the week ending Wednesday, June 14, 2023)Prices
- Henry Hub spot price: The Henry Hub spot price fell 3 cents from $2.11 per million British thermal units (MMBtu) last Wednesday to $2.08/MMBtu yesterday.
- Henry Hub futures prices: The price of the July 2023 NYMEX contract increased 1.3 cents, from $2.329/MMBtu last Wednesday to $2.342/MMBtu yesterday. The price of the 12-month strip averaging July 2023 through June 2024 futures contracts declined 1.6 cents to $3.023/MMBtu.
- Select regional spot prices: Natural gas spot prices fell at most locations this report week (Wednesday, June 7, to Wednesday, June 14). Price changes at major pricing hubs this report week ranged from a decrease of 87 cents/MMBtu at PG&E Citygate in northern California to an increase of 43 cents/MMBtu at FGT Citygate in Florida.
- In the Northeast, prices remain relatively low compared with the Henry Hub and changed little week over week. At the Algonquin Citygate, which serves Boston-area consumers, the price increased 2 cents from $1.62/MMBtu last Wednesday to $1.64/MMBtu yesterday, while the price at Eastern Gas South in southwest Pennsylvania fell 10 cents from $1.42/MMBtu last Wednesday to $1.32/MMBtu yesterday. Total consumption of natural gas in all sectors in the Northeast decreased by 4%, or 0.6 billion cubic feet per day (Bcf/d), week over week mostly due to a 5% (0.5 Bcf/d) decrease in consumption in the electric power sector. Temperatures across the Northeast were generally mild this week. Temperatures in the Boston Area averaged 64°F, leading to 23 fewer heating degree days (HDDs) this week than last week and 2 fewer cooling degree days (CDDs). In the Pittsburgh Area, temperatures averaged 62°F this week, leading to 19 more HDDs and 27 fewer CDDs than last week.
- Along the southern Atlantic coast, prices increased this week. At the Florida Gas Transmission (FGT) Citygate, which reflects deliveries into Florida via the Florida Gas Transmission pipeline, the price increased 42 cents from $2.47/MMBtu last Wednesday to $2.89/MMBtu yesterday. In the Orlando Area, temperatures averaged 83°F, leading to 16 more CDDs than normal and 21 more CDDs than last week. Total consumption of natural gas in all sectors across the Atlantic Coast region increased by 3% (0.3 Bcf/d) week over week, mostly due to a 5% (0.3 Bcf/d) increase in consumption of natural gas in the electric power sector, which more than offset declines in the residential and commercial sectors.
- Along the West Coast, prices decreased this week, but remain relatively high, particularly in California. The price at PG&E Citygate in Northern California fell 86 cents, down from $3.72/MMBtu last Wednesday to $2.86/MMBtu yesterday. The price at SoCal Citygate in Southern California decreased 16 cents from $3.29/MMBtu last Wednesday to $3.13/MMBtu yesterday. Consumption of natural gas in the electric power sector in California decreased by 7% (0.1 Bcf/d) week over week, as temperatures were relatively mild. In the Sacramento Area, temperatures averaged 68°F this week, leading to 12 fewer CDDs than last week, while in the Riverside Area, inland from Los Angeles, temperatures averaged 65°F this week, leading to 1 fewer HDD and 5 fewer CDDs than last week.
- International futures prices: International natural gas futures prices increased this report week. According to Bloomberg Finance, L.P., weekly average front-month futures prices for liquefied natural gas (LNG) cargoes in East Asia increased 3 cents to a weekly average of $9.29/MMBtu. Natural gas futures for delivery at the Title Transfer Facility (TTF) in the Netherlands rose $2.45 to a weekly average of $10.40/MMBtu. In the same week last year (week ending June 15, 2022), the prices were $23.19/MMBtu in East Asia and $28.76/MMBtu at TTF.
- Natural gas plant liquids (NGPL) prices: The natural gas plant liquids composite price at Mont Belvieu, Texas, fell by 24 cents/MMBtu, averaging $5.52/MMBtu for the week ending June 14. Weekly average ethane prices fell 2%, while natural gas prices at the Houston Ship Channel rose 12%, narrowing the ethane premium to natural gas by 21% week over week. Ethylene spot prices fell by 2%, decreasing the ethylene to ethane premium by 2%. Propane prices fell 4%, following Brent crude oil prices, which fell 2%, decreasing the propane discount relative to crude oil by 1%. The normal butane price fell 8%, the isobutane price fell 6%, and natural gasoline fell 4%.
Daily spot prices by region are available on the EIA website.
Supply and Demand
- Supply: According to data from S&P Global Commodity Insights, the average total supply of natural gas fell by 0.6% (0.6 Bcf/d) compared with the previous report week. Dry natural gas production decreased by 0.6% (0.6 Bcf/d), and average net imports from Canada decreased by 0.5% (less than 0.1 Bcf/d) from last week.
- Demand: Total U.S. consumption of natural gas fell by 0.6% (0.4 Bcf/d) compared with the previous report week, according to data from S&P Global Commodity Insights. Natural gas consumed for power generation declined by 1.0% (0.4 Bcf/d) week over week. Industrial sector consumption decreased by 0.1% (less than 0.1 Bcf/d) week over week, and consumption in the residential and commercial sectors declined by 0.3% (less than 0.1 Bcf/d). Natural gas exports to Mexico decreased 3.8% (0.3 Bcf/d). Natural gas deliveries to U.S. LNG export facilities (LNG pipeline receipts) averaged 11.3 Bcf/d, or 0.6 Bcf/d lower than last week.
Liquefied Natural Gas (LNG)
- Pipeline receipts: Overall weekly average natural gas deliveries to U.S. LNG export terminals decreased by 5.4% (0.6 Bcf/d) week over week to average 11.3 Bcf/d this report week, according to data from S&P Global Commodity Insights. Natural gas deliveries to terminals in South Texas fell by 3.4% (0.1 Bcf/d) to 4.1 Bcf/d, while deliveries to terminals in South Louisiana decreased by 8.1% (0.5 Bcf/d) to 6.0 Bcf/d, largely due to decreased flows to the Sabine Pass terminal. Natural gas deliveries to terminals outside the Gulf Coast were relatively unchanged at 1.2 Bcf/d.
- Vessels departing U.S. ports: Twenty-one LNG vessels (five from Sabine Pass; four each from Cameron and Corpus Christi; three each Calcasieu Pass and Freeport; and two from Cove Point) with a combined LNG-carrying capacity of 79 Bcf departed the United States between June 8 and June 14, according to shipping data provided by Bloomberg Finance, L.P.
Rig Count
- According to Baker Hughes, for the week ending Tuesday, June 9, the natural gas rig count decreased by 2 rigs from a week ago to 135 rigs, as the Eagle Ford and Haynesville each dropped one rig. The number of oil-directed rigs increased by 1 rig from a week ago to 556 rigs. The Cana Woodford added two rigs, the Eagle Ford added one rig, and the Permian dropped two rigs. The total rig count, which includes 4 miscellaneous rigs, stands at 695.
Storage
- Net injections into storage totaled 84 Bcf for the week ending June 9, equal to the five-year (2018–2022) average net injections of 84 Bcf and below last year's net injections of 94 Bcf during the same week. Working natural gas stocks totaled 2,634 Bcf, which is 353 Bcf (15%) more than the five-year average and 552 Bcf (27%) more than last year at this time.
- According to The Desk survey of natural gas analysts, estimates of the weekly net change to working natural gas stocks ranged from net injections of 77 Bcf to 101 Bcf, with a median estimate of 92 Bcf.
- The average rate of injections into storage is 7% higher than the five-year average so far in the refill season (April 1 through October 31). If the rate of injections into storage matched the five-year average of 9.1 Bcf/d for the remainder of the refill season, the total inventory would be 3,948 Bcf on October 31, which is 353 Bcf higher than the five-year average of 3,595 Bcf for that time of year.
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Data source: International Group of Liquefied Natural Gas Importers (GIIGNL), The LNG Industry annual reports for years 2012–2021, and CEDIGAZ (2022)
Data source: International Group of Liquefied Natural Gas Importers (GIIGNL), The LNG Industry annual reports for years 2018–2021, and CEDIGAZ (2022)
Data source: International Group of Liquefied Natural Gas Importers (GIIGNL), The LNG Industry annual reports for years 2018–2021, and CEDIGAZ (2022)
| Spot Prices ($/MMBtu) | Thu, 08-Jun |
Fri, 09-Jun |
Mon, 12-Jun |
Tue, 13-Jun |
Wed, 14-Jun |
|---|---|---|---|---|---|
| Henry Hub |
2.08 |
1.86 |
1.95 |
2.03 |
2.08 |
| New York |
1.33 |
1.29 |
1.48 |
1.45 |
1.48 |
| Chicago |
1.96 |
1.72 |
1.89 |
1.98 |
1.99 |
| Cal. Comp. Avg.* |
2.47 |
2.12 |
2.58 |
2.40 |
2.33 |
| Futures ($/MMBtu) | |||||
| July contract | 2.352 |
2.254 |
2.266 |
2.340 |
2.342 |
| August contract |
2.434 |
2.331 |
2.336 |
2.407 |
2.413 |
| *Avg. of NGI's reported prices for: Malin, PG&E Citygate, and Southern California Border Avg. | |||||
| Source: NGI's Daily Gas Price Index | |||||
| U.S. natural gas supply - Gas Week: (6/8/23 - 6/14/23) | |||
|---|---|---|---|
Average daily values (billion cubic feet) |
|||
this week |
last week |
last year |
|
| Marketed production | 113.3 |
114.1 |
110.8 |
| Dry production | 100.6 |
101.2 |
98.6 |
| Net Canada imports | 5.0 |
5.0 |
5.6 |
| LNG pipeline deliveries | 0.1 |
0.1 |
0.1 |
| Total supply | 105.7 |
106.3 |
104.3 |
|
Data source: S&P Global Commodity Insights | |||
| U.S. natural gas consumption - Gas Week: (6/8/23 - 6/14/23) | |||
|---|---|---|---|
Average daily values (billion cubic feet) |
|||
this week |
last week |
last year |
|
| U.S. consumption | 67.1 |
67.5 |
67.7 |
| Power | 35.8 |
36.2 |
37.4 |
| Industrial | 21.5 |
21.5 |
21.6 |
| Residential/commercial | 9.8 |
9.8 |
8.7 |
| Mexico exports | 6.4 |
6.6 |
6.2 |
| Pipeline fuel use/losses | 6.7 |
6.8 |
6.6 |
| LNG pipeline receipts | 11.3 |
11.9 |
11.0 |
| Total demand | 91.5 |
92.8 |
91.5 |
|
Data source: S&P Global Commodity Insights | |||
| Rigs | |||
|---|---|---|---|
Tue, June 06, 2023 |
Change from |
||
last week |
last year |
||
| Oil rigs | 556 |
0.2% |
-4.1% |
| Natural gas rigs | 135 |
-1.5% |
-10.6% |
| Note: Excludes any miscellaneous rigs | |||
| Rig numbers by type | |||
|---|---|---|---|
Tue, June 06, 2023 |
Change from |
||
last week |
last year |
||
| Vertical | 19 |
18.8% |
-29.6% |
| Horizontal | 625 |
-0.5% |
-6.4% |
| Directional | 51 |
-1.9% |
34.2% |
| Data source: Baker Hughes Company | |||
| Working gas in underground storage | ||||
|---|---|---|---|---|
Stocks billion cubic feet (Bcf) |
||||
| Region | 2023-06-09 |
2023-06-02 |
change |
|
| East | 574 |
552 |
22 |
|
| Midwest | 632 |
604 |
28 |
|
| Mountain | 148 |
137 |
11 |
|
| Pacific | 176 |
164 |
12 |
|
| South Central | 1,105 |
1,093 |
12 |
|
| Total | 2,634 |
2,550 |
84 |
|
|
Data source: U.S. Energy Information Administration Form EIA-912, Weekly Underground Natural Gas Storage Report
Note: Totals may not equal sum of components because of independent rounding. Note: Reclassifications from working gas to base gas resulted in decreased working gas stocks of 14 Bcf in the Nonsalt South Central region for the week ending June 2, 2023. The implied flow for the week is an increase of 118 Bcf to working gas stocks. Additional information on the reclassification can be found on our Natural Gas Storage Dashboard Commentary page. | ||||
| Working gas in underground storage | |||||
|---|---|---|---|---|---|
Historical comparisons |
|||||
Year ago (6/9/22) |
5-year average (2018-2022) |
||||
| Region | Stocks (Bcf) |
% change |
Stocks (Bcf) |
% change |
|
| East | 403 |
42.4 |
453 |
26.7 |
|
| Midwest | 478 |
32.2 |
515 |
22.7 |
|
| Mountain | 121 |
22.3 |
135 |
9.6 |
|
| Pacific | 220 |
-20.0 |
244 |
-27.9 |
|
| South Central | 860 |
28.5 |
934 |
18.3 |
|
| Total | 2,082 |
26.5 |
2,281 |
15.5 |
|
| Data source: U.S. Energy Information Administration Form EIA-912, Weekly Underground Natural Gas Storage Report
Note: Totals may not equal sum of components because of independent rounding. |
|||||
| Temperature – heating & cooling degree days (week ending Jun 08) | ||||||||
|---|---|---|---|---|---|---|---|---|
HDDs |
CDDs |
|||||||
| Region | Current total |
Deviation from normal |
Deviation from last year |
Current total |
Deviation from normal |
Deviation from last year |
||
| New England | 56 |
31 |
38 |
7 |
1 |
2 |
||
| Middle Atlantic | 26 |
8 |
19 |
10 |
-6 |
-5 |
||
| E N Central | 14 |
-8 |
-6 |
27 |
2 |
15 |
||
| W N Central | 1 |
-18 |
-21 |
57 |
25 |
35 |
||
| South Atlantic | 4 |
-2 |
3 |
54 |
-8 |
-15 |
||
| E S Central | 1 |
-4 |
0 |
61 |
5 |
-4 |
||
| W S Central | 0 |
-1 |
-1 |
81 |
-6 |
-16 |
||
| Mountain | 25 |
-7 |
5 |
28 |
-12 |
-18 |
||
| Pacific | 20 |
-2 |
13 |
4 |
-13 |
-11 |
||
| United States | 15 |
-3 |
4 |
35 |
-4 |
-3 |
||
|
Data source: National Oceanic and Atmospheric Administration Note: HDDs=heating degree days; CDDs=cooling degree days | ||||||||
Average temperature (°F)
7-day mean ending Jun 08, 2023
Data source: National Oceanic and Atmospheric Administration
Deviation between average and normal temperature (°F)
7-day mean ending Jun 08, 2023
Data source: National Oceanic and Atmospheric Administration
