SINGAPORE, April 12 (Reuters) - Asian spot liquefied
natural gas (LNG) prices edged up this week, reaching the
highest levels in three months, as they remained supported by
steady demand and supply disruption concerns.
The average LNG price for May delivery into northeast Asia
rose to $9.80 per million British thermal units
(mmBtu), its highest since Jan. 12, industry sources estimated.
The average price for June delivery was estimated at
$10/mmBtu.
Prices had edged higher amid heating demand in Europe, while
production disruption at the Freeport LNG terminal in the U.S.
also supported prices, said Samuel Good, head of LNG pricing at
commodity pricing agency Argus.
While daily maximum temperature forecasts for northeast Asia
are likely still too low to incentivise substantial power
cooling demand in April and most of May, much of southeast Asia
is set to continue experiencing hot weather, he added.
"(This is) especially in Thailand where daily maximum
temperatures are set to be around 35 degrees Celsius for the
next few weeks."
The increase in Asian LNG prices is prompting suppliers with
U.S.-origin LNG to consider a shift from Europe, added Masanori
Odaka, a senior analyst at consultancy Rystad Energy.
"Arbitrage for US-origin LNG to Asia has been open since the
first week of April 2024, meaning that suppliers of US-origin
LNG will likely try to market their volume into Asia rather than
Europe," he said.
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 $9.044/mmBtu on
April 11, a $0.19/mmBtu discount to the May gas price at the
Dutch TTF hub, and its highest since Jan. 12.
Argus assessed the May delivery price at $9/mmBtu, while
Spark Commodities assessed May delivery at $8.992/mmBtu.
This comes after Russian attacks on Ukrainian energy assets
this week, as well as Freeport LNG's outage which led to near
zero gas flows on Thursday.
In late March, U.S. LNG company Freeport LNG said it
expected two of the three liquefaction trains at the plant -
Trains 1 and 2 - to remain shut until May for inspections and
repairs, while Train 3 was operating.
Train 3 however experienced a trip late on April 9 that
lasted into April 10, an emissions report filed to regulators
showed.
Additionally, LNG imports to Italy are projected to remain
relatively supported as operations resume at Rovigo and Piombino
terminals after maintenance, while deeper gas maintenance in
Norway over the next two weeks could potentially tighten EU gas
supply and stimulate LNG demand, said Ana Subasic, natural gas
and LNG analyst at data and analytics firm Kpler.
Meanwhile, on spot LNG freight, both the Atlantic and
Pacific rates both fell for a third consecutive week, said Spark
Commodities analyst Qasim Afghan.
The Atlantic spot rate fell to $43,750/day on Friday, while
the Pacific spot rate eased to $46,750/day.