SINGAPORE, May 17 (Reuters) - Asian spot liquefied
natural gas (LNG) prices rose this week to its highest levels
since January, as hot weather across the region spurred more
demand for the super-chilled fuel, and as it tracked gains in
European gas prices on the back of maintenance outages and lower
wind output.
The average LNG price for July delivery into north-east Asia
rose to $10.90 per million British thermal units
(mmBtu), up from $10.50/mmBtu in the previous week and its
strongest levels since Jan. 5, industry sources estimated.
"Asian delivered prices have edged higher in the past few
days... as demand from southeast Asian buyers and gains by
European prices in the past three days have offered support,"
said Samuel Good, head of LNG pricing at commodity pricing
agency Argus.
He added that forecasts of above-average temperatures in
northeast China for the coming month could lift gas-fired
generation to meet greater power sector cooling demand.
Utilities in India are also expected to seek additional spot
LNG volumes to be delivered in June and July due to an ongoing
heatwave, said Rystad Energy analyst Masanori Odaka in a note.
Meanwhile, PetroVietnam Gas said on Thursday it received its
third LNG cargo this year for power generation amid rising
demand due to heatwaves.
Additionally, the market appeared to shrug off a power
outage at the Bintulu LNG complex owned by Malaysia's Petronas,
added Argus' Good, with the facility appearing to continue some
loadings ahead of the issue's resolution.
In Europe, gas prices are seen holding steady for the
upcoming week, pressured by above-average temperatures and
stable pipeline flows, but supported by renewable power
generation uncertainties and reduced feedgas flows at Sabine
Pass LNG in the U.S., said Ana Subasic, natural gas and LNG
analyst at data and analytics firm Kpler.
S&P Global Commodity Insights assessed its daily North West
Europe LNG Marker (NWM) price benchmark for cargoes delivered in
July on an ex-ship (DES) basis at $9.649/mmBtu on May 16, a
$0.15/mmBtu discount to the July gas price at the Dutch TTF hub.
Argus assessed the July delivery price at $9.60/mmBtu, while
Spark Commodities assessed it at $9.451/mmBtu.
On spot LNG freight, both the Atlantic and Pacific rates
held steady this week, said Spark Commodities analyst Qasim
Afghan.
The Atlantic spot rate was estimated at $42,750/day on
Friday, while the Pacific rate was unchanged at $46,750/day, he
said.