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EMEA Natural Gas Update: Prices Down as 1st LNG Tanker Transits Strait of Hormuz

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-- European natural gas futures edged lower in after-hours trading Tuesday, as the first LNG tanker to escape the Persian Gulf through the Strait of Hormuz since the start of the Middle East conflict made news.

The front-month Dutch TTF contract slipped 2.19% to 43.67 euros ($51.12) per megawatt hour, while the UK NBP eased 2.83% to 107.65 British pence ($1.45) per therm.

Prices fell even as Iran's latest diplomatic proposal failed to ease concerns over the strait, a critical global energy chokepoint. US officials were reportedly reviewing the offer but reiterated that core demands remain unchanged.

The proposal reportedly links reopening the strait to Washington lifting restrictions on Iranian ports, with nuclear negotiations deferred to a later stage. The latest diplomatic push follows the breakdown of a second round of talks in Pakistan over the weekend after both sides withdrew.

However, shipping data suggested a partial easing in maritime disruption. The first LNG carrier trapped in the Persian Gulf since the conflict began on Feb. 28 appears to have exited via the Strait of Hormuz on Monday, according to vessel tracking data cited in multiple reports.

The Liberia-flagged LNG tanker, Mubaraz, owned by Abu Dhabi National Oil Company, loaded cargo at Adnoc's Das Island terminal in early March, media outlets reported.

After weeks of inactivity inside the Gulf and a signal blackout beginning around March 31, the vessel, carrying an estimated 132,890 to 137,000 cubic meters of LNG, reappeared west of India on Monday. It is now en route to Tianjin, China, with arrival expected May 14, VesselFinder.com said.

Most of the Gulf's LNG exports flow to Asia, but Europe would still benefit from any easing in global supply tightness as it rebuilds inventories ahead of the winter heating season. EU underground gas storage levels currently stand at 31.75% of capacity, down from 38.42% at the same point last year, according to Gas Infrastructure Europe data released Tuesday.

The US Energy Information Administration reported Tuesday that Dutch LNG futures averaged $14.80 per million British thermal units for the week ending April 24, up 35% from late-February levels, according to Bloomberg data.

In Asia, Japan-Korea Marker front-month prices rose 51% to $16.02/MMBtu over the same period. By contrast, US Henry Hub prices have fallen 9% since February 28, supported by ample domestic supply and limited export expansion.

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