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GLOBAL LNG-Asian spot LNG edges up as hot weather spurs demand
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GLOBAL LNG-Asian spot LNG edges up as hot weather spurs demand
May 17, 2024 4:57 AM

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.

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