Natural Gas Trading Negative in Europe…

[shtferbrains]

Some locations in Texas also negative do to pipeline capacity.

"Gas for next-day delivery at the Waha trading hub dropped as low as minus $2.25 a million British thermal units on Tuesday at the Intercontinental Exchange, according to S&P Global. The plunge into negative territory contrasted with a daily rise of more than 7 per cent in benchmark US gas futures, to $5.585 a mn Btu. The main benchmark for European gas was €98 a megawatt hour, or $28 mnbtu.

https://twitter.com/DoombergT/status/1585013960406814720?t=idvFWRG0x6J9asJaDDPZWw&s=19

[errolanderson]

Apparently about 60 ships are awaiting unload near Europe right now. This is delaying these ships to return stateside for refueling. This is backing up West Texas gas creating prices to plunge negative. Suffield has recently gone negative as well, but return-of-winter should provide a price floor here.

[Old Cowzilla]

Sooooo how many of you guys load up the super-b and haul to the elevator before you call to see if they have room , maybe they need to replace a few ship captains.

[shtferbrains]

The shipping companies have been purchasing the cargos of cheap gas and playing the spread on EU market. Such volitility in Europe they decide where to unload when the see where prices are when they near the destination.
Spot market sales with windfall profits.
They can still take the cargoes to Asia but it's a safe bet EU will need the product.
In a normal market they would be contracting with brokers for the freight and not speculating on the LNG.

[jazz]

For those who cant find the news or even bother to look for it, this is still likely majority russian gas and some NA LNG.

Europe has been buying Russian gas through china for past 6 months.

Take that Putin.

[biglentil]

Amazing Russia blew up their own infrastructure that makes up 40% of their total GDP, and within just a few weeks Europes energy crisis is adverted. Those LNG ships must really move to steam over that quickly. Phew

[shtferbrains]

There were pipelines before Nordstream.
Don't know how they ger it from China but much of it comes thu Ukraine.
Russia pays tariffs for the gas that passes though Ukraine.
They are also supplying Ukraine with gas.

[farmboy44]

Im sure it being +20 in England throughout October plays a factor in lack of heating demand.

[TASFarms]

Is anyone locking in nat gas for their yard for the next year or two?

[AlbertaFarmer5]

Im sure it being +20 in England throughout October plays a factor in lack of heating demand.

Bingo. And the same is true across Europe right now. But no one knew that when the cargos were booked and loaded.