◂ Event Timeline

Sep 15, 2022POLICYEurope

Explainer: Why would Europe need an EU-based LNG pricing benchmark?

Gas prices differ across European hubs partly because of their different capacity to receive LNG cargoes. Countries with several LNG terminals, such as France, trade below hubs like Germany, which has no LNG terminal.

WHY IT MATTERS

The hub price gaps reflect regional infrastructure limits rather than a single market-wide shift. This matters mainly for European energy costs and the case for an EU-based benchmark.

AFFECTSNATGAS

SOURCE
reuters.comMarwa RashadSep 15, 2022

Price reaction & history

NATGASno directional readSO FAR1d -5.0%5d -11.5%20d -26.8%

After 34 past policy events, NATGAS moved a median -1.7% over 5 sessions (38% higher; middle half -7.4% to +2.5%), and +2.6% over 20.

Oct 1, 2022EU wants new transaction based LNG benchmark in bid to calm prices-1.3%
Aug 30, 2022Wholesale gas prices tumble as Europe prepares to intervene in energy markets-10.4%
Feb 28, 2024Assessing the Domestic Energy Price Impact of LNG Exports+9.7%
Feb 13, 2024U.S. LNG Pause Could Help Balance Future Global Natural Gas Prices, Equinor Says-12.8%
Jun 30, 2017Japan ruling shifts LNG balance of power to buyer | The National-5.5%

Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.

NATGAS · GP ▸

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