European delivered LNG in December up to 7.04 million mt

Europe's delivered imports of LNG in December rose 2.59 million mt last week to total 7.04 million mt on Dec. 18, according to S&P Global Commodity Insights data, to be at 64% of the November level which was the highest since May.

The volumes for December were headed to France (1.32 million mt), the UK (1.12 million mt), Turkey (910,000 mt), the Netherlands (820,000 mt), Spain (640,000 mt), Italy (590,000 mt), Belgium (530,000 mt), Germany (290,000 mt), Poland (230,000 mt), Greece (140,000 mt), Croatia (140,000 mt), Finland (130,000 mt), Portugal (120,000 mt) and Lithuania (70,000 mt).

The US was supplying 51% of the total, while Russia was supplying 13% and Algeria contributing 7%.

Depressed demand

Milder temperatures across Europe, meaning a lack of demand from the heating sector, has continued to weigh on sentiment across Europe.

With buyers and sellers said by one source to to be 'holding their ground', leading to a large gap between bids and offers, trading activity towards the end of the year has been quiet.

Platts, part of S&P Global Commodity Insights, assessed the DES Northwest Europe Marker for January was assessed at $9.763/MMBtu on Dec. 15, down 62.9 cents/MMBtu on the day and $1.742/MMBtu lower on the week.

Although European gas storages have continued their withdrawal trend, sources suggest the continent remained comfortably stocked for the winter season. Several still saw Europe ending the heating season with storage levels above 50%, while others said storages could even land between 70% and 80% should mild temperatures persist.

Gas storage levels in the EU fell 2.28% week on week to land at 88.84% full as of Dec. 16, according to Aggregated Gas Storage Inventory data.

"There is no bottom to the price right now," an LNG trader said. "Most players storages are full, and it has not been a normal winter."

Recessionary pressures in Europe, as well as the overall weak economic outlook have added to the bearish outlook with sources seeing very little catalyst for demand growth. Several sources still see a relatively flat structure throughout the rest of winter and suggested limited interest will be seen until April.

Although specks of activity were being heard between March and April, sources said it was more opportunistic buying and selling interest, rather than any concrete trading activity. Open interest for January and February has seen strong downward pressures, with only slight improvements between March and May.