SINGAPORE, Jan 17 (Reuters) - Asian spot liquefied

natural gas (LNG) prices slightly declined this week, weighed by

healthy inventory levels in the region and weak demand.

The average LNG price for March delivery into north-east

Asia slipped to $13.90 per million British thermal

units (mmBtu), versus $14.00/mmBtu last week, industry sources

estimated.

"The slight decrease was attributed to weak demand in Asia,

as buying interest remained muted despite colder weather, owing

to healthy inventory levels," said Go Katayama, an analyst at

data and analytics firm Kpler.

"Going forward in Asia for the week ahead, we can expect

some bearishness in prices driven by balanced inventories and

average to warmer-than-usual temperatures across key markets.

The contract rollover to March deliveries is expected to further

pressure prices, as forecasts indicate a 50-60% chance of

above-average temperatures in March."

In the world's second-largest importer Japan, LNG stockpiles

held by major electric utilities were at 2.11 million metric

tons as of Jan. 12, down from 2.15 million tons last January but

above the five-year average of 1.96 million tons, data from

Japan's industry ministry showed.

Northeast Asian demand has also been muted as current prices

are too high for spot demand to emerge from price-sensitive

buyers in India and China, said Martin Senior, head of LNG

pricing at Argus.

"There have been at least six diversions in the mid-Atlantic

from Asia to Europe over the past week, with weak Asian demand

providing limited competition for Atlantic basin cargoes," he

said.

In Europe, prices rose on transit concerns on the TurkStream

gas pipeline, unplanned maintenance at Azerbaijan's Shah Deniz

field, U.S. sanctions on two Russian export terminals and

forecast of colder temperatures in northwest Europe.

"Winter demand has picked up and, as a result, both import

flows and stocks are needed to meet demand. Moreover, northwest

Europe has experienced... periods with no wind and no sun," said

Hans Van Cleef, chief energy economist at PZ-Energy.

"Demand for gas for power generation has increased."

S&P Global Commodity Insights assessed its daily North West

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

March on an ex-ship (DES) basis at $13.73/mmBtu on Jan. 16, a

$0.25/mmBtu discount to the March gas price at the Dutch TTF

hub.

Argus assessed the price at $13.69/mmBtu, while Spark

Commodities assessed the February price at $13.664/mmBtu.

The U.S. arbitrage to northeast Asia via the Cape of Good

Hope for February widened, strongly signalling that U.S. cargoes

are incentivised to deliver to Europe over Asia, said Spark

Commodities analyst Qasim Afghan.

He added that the U.S. arbitrage to Northeast Asia via the

Panama Canal is also closed.

In LNG freight, Atlantic rates dropped for a second straight

week to $20,000/day on Friday, while Pacific rates fell to

$18,750/day, said Afghan.