Natural Gas Trading Negative in Europe…

[TOM4CWB]

There is a whole bunch of LNG ships… sitting off shore in the EU, that can’t unload… because the storage for NG is full…

So the ‘Next Hour’ price of Natural Gas in Europe ; went negative on Monday.

High prices solve high prices… the crisis isn’t over… but…

[TOM4CWB]

[TOM4CWB]

[woodland]

Hmmmm………….

[sumdumguy]

Hmmmm………….

Very hmmm….

[ColevilleH2S]

So I'd assume their fertilizer plants are running full bore then?

[WiltonRanch]

So I'd assume their fertilizer plants are running full bore then?

Bloody hope so.

[AlbertaFarmer5]

So I'd assume their fertilizer plants are running full bore then?

They are restarting lately. Will likely be very short-lived. They also have more scheduled to come offline as winter comes.

Nothing surprising about the pricing situation. You can't exactly unload the natural gas and stack it up in a pile on the dock until you need it. Most of the European nations have a few weeks worth of storage. It is basically full across Europe right now. Usage is low because of favorable weather and price disincentives /deindustrialization.
Once the weather turns cold and the storage starts to be consumed, the LNG ships won't be able to keep up.
Exacerbating the situation, the LNG ships already loaded are being used as floating storage waiting for what are already much higher prices in the coming months. So they won't be available to reload and come back again when the need is the highest.

[WiltonRanch]

So when ng is compressed to lng what is the compression factor? I know it’s relative energy is lower than lpg or diesel but compressing it to liquid would it be closer to lpg? Dumb question I know

[jazz]

Contango. Europe is still short gas no question.

During covid oil traded negative for a few days. Traders made billions off that.

This has the US fingerprints all over it. LNG is way more expensive than pipeline gas even if they are temporarily over supplied it shouldn’t have a dramatic effect on price. Looks like a freebie from American caverns just like the SPR draws. Trouble is those will all have to be replenished next yr.

Just another can kick down the road. Both Europe and US will be short next yr. What a tremendous opportunity canada missed to be a swing supplier. Too bad the climate wackos blocked all our projects.

[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.