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GLOBAL LNG-Asia spot LNG holds at 6-week top amid sustained demand
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GLOBAL LNG-Asia spot LNG holds at 6-week top amid sustained demand
Apr 5, 2024 4:15 AM

SINGAPORE, April 5 (Reuters) - Asian spot liquefied

natural gas (LNG) was unchanged this week, keeping at a six-week

high over $9 per million British thermal units (mmBtu) for a

third consecutive week, as demand from buyers continued shoring

up prices.

The average LNG price for May delivery into northeast Asia

held at $9.50/mmBtu, the same as the previous week,

which was its highest level since February 9, industry sources

estimated.

Demand was sustained due to colder-than-normal weather

driving some gas demand in northeast Asia, said Ryhana Rasidi,

gas and LNG analyst at data and analytics firm Kpler.

She added that Chinese players are likely waiting for

further price declines to encourage more LNG buying and that the

recent earthquake in Taiwan has had little impact on prices as

no nuclear infrastructure was affected.

A spokesperson from Taiwan's state-owned energy company CPC

told Reuters that its two LNG import terminals had not been

affected by the earthquake and are operating normally, while

imports remain on schedule.

In India and South Korea, high terminal stocks have been

capping interest from buyers, but lower inventories in Japan

have underpinned some demand, said Samuel Good, head of LNG

pricing at commodity pricing agency Argus.

In Europe, S&P Global Commodity Insights assessed its daily

North West Europe LNG Marker (NWM) price benchmark for cargoes

delivered in May on an ex-ship (DES) basis at $8.14/mmBtu on

April 4, a $0.20/mmBtu discount to the May gas price at the

Dutch TTF hub.

Argus assessed the May delivery price at $8.10/mmBtu, while

Spark Commodities assessed the April delivery price at

$8.047/mmBtu.

"European gas prices have been under pressure as the

temperatures are rising and we have reached the end of the

winter season," said Hans Van Cleef, chief energy economist at

PZ - Energy.

"With inventories well filled, and healthy LNG flows towards

Europe expected, prices of the active month contracts have

dropped."

However, the emergence of Egypt's natural gas company EGAS

for LNG deliveries to Jordan, and expectations that the

country's demand could reach some 20 cargoes, has raised the

prospects of competition for European buyers for summer cargoes

to be loaded from Atlantic terminals, added Good from Argus.

Meanwhile, on spot LNG freight, both the Atlantic and

Pacific rates both fell for a second consecutive week, said

Spark Commodities analyst Qasim Afghan.

The Atlantic spot rate fell to $44,750/day on Friday, while

the Pacific spot rate eased to $47,000/day.

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