LONDON, Aug 15 (Reuters) - Asian spot liquefied natural

gas (LNG) prices declined this week on soft demand and strong

storage inventories and as markets awaited the outcome of a

meeting between U.S. President Donald Trump and Russian leader

Vladimir Putin later today.

The average LNG price for September delivery into north-east

Asia was at $11.65 per million British thermal units

(mmBtu), down from $11.90/mmBtu last week, industry sources

estimated.

The contract for October delivery was estimated at

$11.45/mmBtu.

"This (meeting) may not only be decisive for Ukraine but

also for the fate of Russian sanctions and economic development

between the two nations. It may not be surprising if Russia

would open discussion on Arctic LNG 2, as it's clearest link to

LNG markets," said Klaas Dozeman, market analyst at Brainchild

Commodity Intelligence.

Sanctioned by the United States, Russia's 19.8 million tons

per annum (mtpa) Arctic LNG 2 terminal has had two of its three

trains installed and could quickly add to global supply if

sanctions were loosened.

Conversely, Russia's Yamal and Sakhalin LNG export terminals

export about 30 mtpa and could be subject to future sanctions if

those were bolstered, said Martin Senior, head of LNG pricing at

Argus.

Geopolitics remain the wild card, said Arturo Regalado,

senior LNG analyst at Kpler.

"A lack of progress could reignite concerns over tighter

sanctions on Russian energy, as well as potential secondary U.S.

tariffs on Russian oil and gas buyers," he said.

While the weather has turned a slightly hotter again in Asia

it has not attracted major spot purchases - partly due to the

pressure on oil prices - which meant oil-indexed long term LNG

contracts became competitive against spot purchases, Dozeman

said.

Argus' Senior said that some Chinese demand has emerged,

with Beijing Gas buying two cargoes below $12/mmBtu. The firm

last year said that it viewed $12/mmBtu and above as too

expensive for LNG imports.

Prices are seen lower next week as high Chinese inventories

continue to keep north-east Asian spot demand soft, with stable

Pacific supply and seasonal temperatures adding to the bearish

tone, said Kpler's Regalado.

In Europe, gas prices at the Dutch TTF hub were trading in a

narrow range on Friday with heatwave across the continent was

starting to ease and as markets focused on the Trump-Putin

meeting.

S&P Global Commodity Insights assessed its daily North West

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

September on an ex-ship (DES) basis at $10.582/mmBtu on August

14, a $0.415 /mmBtu discount to the September futures price at

the TTF hub.

Argus assessed the price at $10.540/mmBtu, while Spark

Commodities assessed it at $10.534/mmBtu

The U.S. arbitrage to north-east Asia via the Cape of Good

Hope is still incentivising U.S. cargos to deliver to Europe.

Similarly, the arbitrage via Panama is pointing to Europe, said

Spark Commodities analyst Qasim Afghan.

Global LNG freight rates remained relatively steady, with

the Atlantic rates assessed at $36,000/day and Pacific rates at

$33,250/day, Afghan added.