Market eyes liquefaction plant disruptions in US and Australia

European TTF front-month price outlook: Neutral

Kpler Insight anticipates the TTF front-month contract to remain relatively steady this week as higher temperatures are forecast to spread across the continent after 1 December, while the possibility of strong, albeit volatile wind output will weigh on gas for power demand. This is likely to be countered by concerns around lower feedgas deliveries into the US’ Freeport LNG facility.

Asian LNG front-month price outlook: Neutral

Kpler Insight has a neutral outlook on the Asian LNG front-month price over the next week, maintaining an open arbitrage to Asia. While temperatures are forecast to be relatively in-line with seasonal norms, the emergence of some buying interest and unplanned outages in Australia and the US are expected to keep the market supported.

US Henry Hub front-month price outlook: Neutral

US Henry Hub prices held steady last week after the last week of the December contract saw prices rise to the $3.50/MMBtu mark briefly. Upcoming cold weather across much of the US will likely keep Henry Hub prices above $3.00/MMBtu as residential and commercial demand is slated to increase considerably.