European LNG prices were steady falling only 0.1% on Monday to EUR 31.70 off the intraday low of EUR 31.07. They are down over 8% this month. Concerns over growth in China following disappointing Q2 GDP data were offset by continued output reductions from Texas’ damaged Freeport LNG facility which exports to Europe. It has canceled numerous shipments since Hurricane Beryl.

• Since Russia’s invasion of Ukraine, Europe has had to compete with Asia, especially China, for global LNG supplies. But with growth in China less than expected in Q2, it is likely to consume less gas too. European inventories are elevated at over 80% full, above seasonal averages, as demand has been soft and flows from Norway steady. Euro area May IP fell 0.6% m/m to be down 2.9% y/y, suggesting industrial gas demand is likely to remain weak.
• US natural gas prices fell 7% to $2.17 on Monday to be down almost 17% in July to date. The move lower was driven by forecasts for cooler weather from the weekend and ongoing output reductions at Freeport.
• The Freeport LNG plant was damaged by Hurricane Beryl and its output has been cut reducing its demand for gas. According to Bloomberg is can liquefy up to 2% of US daily gas output. LNG output will be restarted in phases with the first line reopening this week. For now the facility’s total output will be reduced but hasn’t said for how long. It ships LNG to Europe and Asia.
• North Asian prices fell 1% to be down over 5% in July driven by data showing disappointing growth in China.