SINGAPORE, April 26 (Reuters) - Asian spot liquefied

natural gas (LNG) prices dropped slightly for the first time in

more than two months this week over expectations of weak demand,

amid easing concerns around supply due to tensions in the Middle

East.

The average LNG price for June delivery into north-east Asia

rose to $10.20 per million British thermal units

(mmBtu), falling off the over three month-highs it hit last

week, industry sources estimated.

Asia LNG prices, which scaled a 15-week high this month,

have either been largely flat or increased week-over-week since

March. The rally in LNG prices has curbed Asian buyers' demand

for spot cargoes, industry officials say.

"The prospect of a runaway escalation (in Middle East

tensions) appears to have receded but has not disappeared, as

have the TTF and Asian spot prices," Rystad Energy analysts said

in a note on Friday.

Rystad said the delay in restarting Japan's 1.1 gigawatts

(GW) Higashidori nuclear reactor could drive demand for

replacement fuels including natural gas. Despite China's factory

activity in March growing for the first time since September,

overall downstream gas demand remained weak, the analysts said.

"Despite some bullish signals towards the northern summer,

the upside risk remains capped due to weak demand in

price-making regions," Rystad said.

The markets largely shrugged off a gas leak at Norway's

Hammerfest terminal this week, which took place during a brief

period of planned maintenance, said Samuel Good, head of LNG

pricing at commodity pricing agency Argus.

"LNG delivered prices in Europe and northeast Asia have

fallen back from their recent rally, with losses in both markets

largely underpinned by weaker European gas hub prices as

expectations for heating demand in the region waned," Good said.

S&P Global Commodity Insights assessed its daily North West

Europe LNG Marker (NWM) price benchmark for cargoes delivered in

June on an ex-ship (DES) basis at $9.252/mmBtu on April 25, a

$0.15/mmBtu discount to the gas price at the Dutch TTF hub.

Atlantic LNG prices have seen support from supply concerns,

including a recent trip to Freeport LNG's Train 3 liquefaction

unit on April 23, said Margaret Rogers, senior editor at S&P

Global Commodity Insights.

"Subdued feedgas volumes in the U.S. coupled with

maintenance in Norway and cooler temperatures in Europe have

kept prices elevated in the region, with EU natural gas storages

witnessing net withdrawals for two consecutive days," Rogers

said.

Argus assessed the June delivery price at $9.2/mmBtu.