LONDON, Dec 6 (Reuters) - Asian spot liquefied natural
gas (LNG) prices edged down this week as high inventories
depressed demand, but prices remained near their highest level
this year, tracking European gas prices which have risen on
supply concerns.
The average LNG price for January delivery into north-east
Asia was at $15.00 per million British thermal units
(mmBtu), slightly lower than $15.10/mmBtu last week, industry
sources estimated.
"Colder temperatures in north-east Asia will keep prices in
check although not expected to lift spot demand as ample
inventory levels and high LNG prices will sideline major
buyers," said Go Katayama, LNG and natural gas analyst at Kpler.
"We think Asian prices will hold steady, with some risks on
downside due to recovering supply from the Pluto and Freeport
(facilities), higher pipeline gas from Russia to China and
higher nuclear availability in Japan," Katayama said.
Pakistan's deferment of some Qatari LNG cargoes from 2025 to
2026 marks the second occasion in a month in which a country
bought more LNG beforehand but in the end will consume less,
after Egypt's slowdown of cargoes due to logistic complexities,
said Klaas Dozeman, market analyst at Brainchild Commodity
Intelligence.
"This creates a slight loosening of the balance for 2025,"
Dozeman added.
In Europe, gas prices were firm amid colder weather this
week and faster gas storage withdrawal.
"Europe's gas storage facilities are below the levels of the
previous two years, although they are still significantly higher
than they were at the same time in 2021 ahead of the energy
crisis of 2022," said Alex Froley, senior LNG analyst at data
intelligence firm ICIS.
"If the rest of winter is mild, prices could fall back, but
if it remains colder, storage will enter next summer lower than
last year, which has contributed to stronger prices for summer
2025," Froley said.
S&P Global Commodity Insights assessed its daily North West
Europe LNG Marker (NWM) price benchmark for cargoes delivered in
January on an ex-ship (DES) basis at $14.209/mmBtu on Nov. 14, a
$0.20/mmBtu discount to the January gas price at the Dutch TTF
hub.
Argus assessed the price at $14.220/mmBtu, while Spark
Commodities assessed it at $14.20/mmBtu.
European interest in cargoes for next year was shown this
week by two tenders by Poland's Orlen and Turkey's Botas, said
Samuel Good, head of LNG pricing at Argus.
Competition between the Pacific and Atlantic basis have
remained strong, with the arbitrage - moving cargoes from one
place to another - for U.S. loadings holding open for prompt
cargoes but shut for most exports planned for Q1, Good said.
The U.S. arbitrage to north-east Asia via the Panama Canal
is currently also signalling U.S. cargos to north-west Europe,
said Spark Commodities analyst Qasim Afghan.
In LNG freight, Atlantic rates have rose for the second week
running to $22,000/day on Friday, while Pacific rates steadied
at $23,750/day, the analyst added.