Chat with us, powered by LiveChat

Natural Gas Price Trend

Procurement Resource provides latest prices of Natural Gas. Each price database is tied to a user-friendly graphing tool dating back to 2014, which provides a range of functionalities: configuration of price series over user defined time period; comparison of product movements across countries; customisation of price currencies and unit; extraction of price data as excel files to be used offline.

For the First Quarter of 2022

Asia

Natural gas prices in India started to rise by the end of January with prices increasing from 296 INR/MMBtu to 346 INR/MMBtu. In February, the prices further increased to 373 INR/MMBtu but then witnessed a sharp decline to 297 INR/MMBtu by mid-Feb. Natural gas prices started to climb again and reached 363 INR/MMBtu by the end of the month. In March, the natural gas market observed a few ups and downs but the overall market dynamics remained strong with prices increasing to 425 INR/MMBtu by the end of the quarter. International gas prices have risen in recent months as a result of low storage inventories, strong demand in Asia, unusual weather patterns, including a cold European spring and a hot Asian summer, and supply disruptions. The price rally is being fueled further by tensions between Russia and Ukraine, as well as uncertainty about Russian gas supplies to central Europe.

Europe

Natural gas prices in Europe reached new highs as fighting in Ukraine threatened to reduce Russian supplies of the heating and power-generation fuel. Russian gas continues to flow in large quantities through Ukraine to customers in Europe. However, traders are concerned that those supplies may be cut off as Russia intensifies its fighting, and that Russian gas supplied via other pipeline routes may be disrupted as a result of Western sanctions imposed on Moscow. Alternatives such as liquefied natural gas from the United States would struggle to fill the void left by Russian exports, and would come at a high cost as Europe competes with other gas-consuming regions for limited supplies. On March 7, the price of natural gas in Europe reached an all-time high, briefly reaching 345 EUR/MWh. In terms of British thermal units of energy, that equates to 600 USD/barrel of oil.

North America

Spot natural gas prices at the national benchmark averaged 4.38 USD/MMBtu in January, up from an average of 3.76 USD/MMBtu in December. Natural gas prices are likely to remain volatile in the coming months, and how temperatures affect natural gas demand in February and March will be a key factor in determining how inventories end the withdrawal season, which will affect natural gas price formation in the coming months.

For the Fourth Quarter of 2021

Asia

Natural gas prices in India in December 2021 were Rs. 341.6/MMBtu. Under the domestic gas price regime, India hiked the domestic price by 62% in 2021, from 1.79 USD/MMBtu to 2.9 USD/MMBtu. The new price, which took effect on October 1, raised the electricity prices from gas-fired power plants as well as the cost of fertiliser manufacturing. When growth resumed year, particularly in Asian markets, demand soared, and energy producers strained to keep up, driving up the natural gas prices. In December 2021, China's average pipeline gas import price was 6.15 USD/MMBtu, down marginally from 6.22 USD/MMBtu from the previous month as according to the General Administration of Customs, China's total natural gas imports climbed by 19.9% year on year, with pipeline gas imports increasing by more than 22% and LNG imports increasing by more than 18%. In October 2021, natural gas prices reached new highs. Prices for Australian thermal coal, European and Asian spot natural gas were three, four, and two times higher in February than in January. The rise in prices reflected a sharp rise in demand for electricity generation, particularly in China and India, as well as supply constraints, owing in part to bad weather.

Europe

A chilly winter in Europe resulted in higher gas demand and a quick depletion of storage facilities. Another reason was that despite the rising importance of renewable energy sources in Europe this year, wind energy generation was insufficient. Alongside, LNG supplies were redistributed in favour of premium Asian customers. Fall in European output also resulted in price hike. The price in December 2021 was noted to be at peak of around 182.3 EUR/MWh.

North America

Natural gas prices fell to their lowest point in Q4 as compared to October 2021. Production disruptions caused by Hurricane Ida's landfall, combined with rising energy demand and a lack of infrastructure, resulted in prices more than doubling since the beginning of the year in October. The prices in the United States fell to their lowest level in over a month near the end of Q4 due to forecasts of a warmer-than-expected winter forecast. Due to decreased contract settlements and weak futures in worldwide markets, Henry Hub Natural Gas prices fell to 3.7 USD/MMBtu in December.

South America

LNG imports into South America spiked, driven by Brazil and Argentina. Gas supply contracts between state-owned oil and distribution corporations expired in December. Petrobras proposed a four-year contract with a 50% gas price adjustment, which was later suspended by the Brazilian state court. However, this price hike would’ve caused an increase in natural gas price from 8 to 12 USD/MMBtu.

For First, Second and Third Quarters of 2021

Asia

Despite the chilly weather in the North-East Asian region, LNG demand in Asia remained high in the first half of the quarter. In January 2021, China and Japan were jointly responsible for a rise of 162.43 Bcf on a year-over-year basis. To accommodate rising demand, Japan's JERA purchased a total of 3 MMT from November 2020 to February 2021. Due to the absence of the requisite transportation freights, supply remained restricted. In February, the average price of LNG for imports to China hit a 14-month high of 8.4 USD/MMBtu, up from 7.36 USD/MMBtu in January.

Due to planned and unanticipated turnarounds in Australia, Malaysia, and Indonesia, LNG supplies were limited in the second quarter. The commencement of production at Australia's Ichthys LNG Plant was postponed due to technical concerns. Throughout the quarter, demand remained strong, and sentiments were buoyed by China's CNOOC's request for around 10 LNG cargoes between July and March 2022, indicating the country's strong economic growth. Furthermore, on a year-over-year basis, June LNG shipments to Japan increased by 18%, while shipments to China increased by 27%. The average LNG price for July deliveries in the Northeast Asian region crossed 12.10 USD/MMBtu during a particular week in June, up around 1.15 USD from the previous week's values.

Europe

Natural gas prices nearly five folded from their lows in 2020 to hit a new high of 15.8 USD/MMBtu, the highest on record. Several British energy companies have gone bankrupt as a result of the gas pricing crisis. Nine companies are said to have gone out of business in September alone. At the end of Q3-2021, Germany's household gas prices were raised by 11.5%, The hike of 11.5 percent will add 172 euros to the bills of 310,000 homes, who already pay 1,516 euros ($1,775.54) for 20,000 kilowatt hours (kWh) of yearly gas use. Factors driving costs include Asia's economic rebound, which has sent linked coal and gas prices surging, political agendas will to raise the cost of European carbon permits, increased oil prices, a drop in renewable energy generation in Germany due to weather, and a planned phase-out of coal power stations.

North America

LNG supplies in the North American region have remained high in recent quarters, with all six U.S. LNG export facilities reported to be operating at maximum capacity due to increased export demand from the Asia-Pacific region. Later in the first quarter, however, US LNG suppliers were reportedly moving their shipments to Europe since it was more cost-effective for them to sell into Europe than Asia due to lower shipping costs, despite the fact that prices in Europe and Asia are still significantly higher than in the Americas. Unprecedented frigid weather conditions in the Gulf of Mexico region of the United States boosted local LNG demand for heating. Volatility arose early in 2021 as a result of near-record-high spot prices amid February's harsh winter weather, prices increased throughout the year, rising from 2.62 USD/MMBtu in March to 5.51 USD/MMBtu in October. The energy crisis had been exacerbated by a number of causes, including demand rebounding while supply remained tight. In 2021, the wholesale spot price for natural gas in Louisiana (the U.S. benchmark) averaged 3.89 USD/MMBtu, nearly double the 2020 average. A strong winter storm in the central United States in mid-February raised energy usage while also disrupting electricity supplies.

Latin America

In Latin America, ex-ship prices were above 9 USD/MMBtu. The country increased its import of LNG by two times due to the deregulation of gas market and infrastructure buildout to receive LNG also due to natural factors such as drought which directly affected the efficiency of country's hydropower generation capacity (Brazil's 70% energy is generated via hydropower). The price in Brazil was 0.170 USD/kWh for households and 0.063 USD/kWh for businesses in the month of June.

For the Year 2020

Asia

As the winter season hit the continent in Q4 2020, the North-eastern Asia region saw an unprecedented rise in LNG demand, generating an unanticipated shrinkage in regional supplies, which was worsened by a lack of transportation availability. The rapid increase in demand, production concerns in Australia and Malaysia, two main exporters to the Asian market, and unnecessary delays due to traffic congestion at the Panama Canal all contributed to a supply shortage. A combination of these factors prompted a five-fold increase in LNG prices across Asia since the second quarter, when the pandemic drove them below USD 2.00 per MMBtu owing to COVID-related interruptions. PetroChina and China National Offshore Oil Corp. announced a joint venture in December. Lower-than-average temperatures and increased manufacturing activity boosted regional demand, prompting CNOOC to organise global bids for LNG quantities on Shanghai Petroleum and Natural Gas Exchange Shanghai. In November, the Japan-Korea Marker (JKM) benchmark increased to USD 6.8/MMBtu, a new high. In addition, despite plunging below USD 2/MMBtu at points in May, the UK benchmark NBP and TTF in the Netherlands were trading in the USD 5-6/MMBtu region. Positive revisions in worldwide pricing as we enter the winter months suggest that LNG demand will continue to rise in the coming months. In 2021, Asian LNG demand is expected to be boosted by India's increased focus on converting from coal to gas, which would be joined by China and other Asian countries.

Europe

In early 2020, demand for natural gas and energy in general decreased as a result of the Covid-19 pandemic and its accompanying restrictions. Sweden had the highest residential natural gas price in the European Union in 2020, at more than 9 Euro cents/kWh, for an annual usage of more than 200 GJ. Portugal had the second highest residential gas price, at 7 Euro cents/kWh. Latvia, on the other hand, had the cheapest pricing in this range, at 2.5 Euro cents/kWh.

Since 2008, the price has decreased for German industrial customers. Prices for users with yearly consumption higher than 10,000 GJ but less than 100,000 GJ declined from 4.72 c Euro cents/kWh in 2008 to 2.89 Euro cents/kWh in 2020. Despite the fact that industry costs have been decreasing, German households have had to dig deeper into their purses to pay their gas bills. Gas costs for residential customers in Europe were roughly double those for industrial customers. Households in Germany with annual use of less than 200 GJ paid 6.1 Euro cents/kWh. Households in the Netherlands were the ones who had to pay the most.

North America

2020 prices at the benchmark Henry Hub reached their lowest level in 25 years due to warm weather and a slowdown in economic activity induced by the COVID pandemic. The average daily spot price at Henry Hub in 2020 was $1.9988/MMBtu, the lowest yearly average since 1995's $1.708/MMBtu. According to the EIA, natural gas prices fell steadily until the summer of 2020 as LNG export demand dried up and the warm spring lowered heating demand. According to the federal data office, LNG demand increased in the second half of the year, boosting natural gas prices.

Gas consumption for heating fell 2% in 2020, but consumption for electricity grew 2% as low costs encouraged power generators to use gas instead of coal, according to the EIA. Gas demand for power reached historic highs in July 2020, because to a combination of cheap summer costs and high summer temperatures.

Please Login or Subscribe to explore our dashboard.

About Natural Gas:

Natural Gas, a fossil energy source formed deep beneath the earth's surface, is a mixture of several compounds and/or gases. It is primarily composed of hydrocarbon elements while its largest component is methane. It is a non-renewable hydrocarbon, which is utilised as an energy source for various purposes including cooking, heating, and electricity generation.

It serves as an important chemical feedstock in the production of commercially important organic chemicals and is further used as a fuel for vehicles. Crude form of Natural Gas is often referred to as wet natural gas because, along with methane, it contains NGLs (natural gas liquids), and water vapour.

Product Details:

Report Features Details
Product Name Natural Gas
Industrial Uses Fertilizer, Antifreeze, Plastics and glass, Fabrics, Chemical feedstock, Paint, Power generation, Transportation, Animal and fish feed
Supplier Database Gazprom PAO, Royal Dutch Shell Plc, Exxon Mobil Corporation, Total SA, PetroChina Company Limited, BP Plc
Region/Countries Covered Asia Pacific: China , India, Indonesia, Pakistan,  Bangladesh, Japan, Philippines, Vietnam, Iran, Thailand,  South Korea, Iraq, Saudi Arabia, Malaysia, Nepal,  Taiwan, Sri Lanka, UAE, Israel, Hongkong, Singapore,  Oman, Kuwait, Qatar, Australia, and New Zealand

Europe: Germany, France, United Kingdom, Italy,  Spain, Russia, Turkey, Netherlands, Poland, Sweden,  Belgium, Austria, Ireland Switzerland , Norway,  Denmark, Romania, Finland, Czech Republic, Portugal and Greece

North America: United States and Canada

Latin America: Brazil, Mexico, Argentina, Columbia,  Chile, Ecuador, and Peru

Africa: South Africa, Nigeria, Egypt, Algeria, Morocco
Currency US$ (Data can also be provided in local currency)
Supplier Database Availability Yes
Customization Scope The report can be customized as per the requirements of  the customer
Post-Sale Analyst Support 360-degree analyst support after report delivery


Production Processes:

  • Production of Natural Gas via Processing and Separation

In order to produce consumer-grade, or pipeline quality natural gas, the crude natural gas (wet gas) obtained from oil wells is sent to a processing plant to remove water vapour and nonhydrocarbon compounds like sulphur, helium, carbon dioxide, etc. After the removal of these impurities, NGLs are also separated from the wet gas, and the processed Natural Gas is sent through pipelines for distribution after the addition of odorants.

Note: Our supplier search experts can assist your procurement teams in compiling and validating a list of suppliers indicating they have products, services, and capabilities that meet your company's needs.

Methodology:

The displayed pricing data is derived through weighted average purchase price, including contract and spot transactions at the specified locations unless otherwise stated. The information provided comes from the compilation and processing of commercial data officially reported for each nation (i.e. government agencies, external trade bodies, and industry publications).

Other Products

Assistance from Experts

We aim to provide one-stop solution for all procurement and sourcing information by engaging newest form of technology and methodology. Our team of analysts offers compete and all-round support and are ready with answers to any questions related to the reports after they are purchased by our clients.


Client's Satisfaction

Procurement Resource supports its clients with highly customised reports that are created focussing on their needs and requirements. We also provide our clientele with specialised assessments and evaluations for their procurement team which help them take timely decisions and strategize their plan of actions according to the present need of the market.


Assured Quality

We follow an extensively results-driven approach to provide our clients with superior quality solutions and most newly gathered information that helps our clients to attain procurement brilliance. Our team of experts concentrate on presenting both qualitative aspect and accuracy of the report.

NEWSLETTER

Get latest News About Procurement Resource
Subscribe for news

This site uses cookies (including third-party cookies) to record user’s preferences which help us to enhance our services. For further information review our Privacy Policy