Unseasonable temperatures in Europe drive recent multi-year highs in LNG prices
LNG prices may be set for strong Q4
Supply- and demand-side factors pushed contracts to multi-year highs in recent months and may continue to lend support going into the fourth quarter
Global LNG prices have hit record levels in recent weeks as Europe and Asia continue to compete for restricted supply. But there is debate over whether prices will remain quite as high for the remainder of 2021. This year started with price spikes stemming from a combination of outages, colder-than-usual temperatures in the northern hemisphere and the blockage of the Suez Canal. This all contributed to the depletion of European gas storage, with the knock-on effect of raising global LNG demand for the rest of the year. Subsequent opportunities to rebuild stocks have been limited and prices have continued to spike in a tightly balanced market. Indeed, Europe has since experienced unseasonably
Also in this section
8 January 2026
Indonesia and Malaysia are at the dawn of breathtaking digital capabilities. Their energy infrastructure must keep up with their ambitions
8 January 2026
The next five years will be critical for the North Sea, and it will be policy not geology that will decide the basin’s future
8 January 2026
The region’s access to versatile feedstock, combined with policy support, is setting it up to meet growing demand both at home and abroad
7 January 2026
No longer can the energy source be considered a sidekick to oil in the Middle East and neither should it step aside for less convincing alternatives
