SINGAPORE, Oct 11 (Reuters) - Asian spot liquefied
natural gas (LNG) slightly slipped this week as demand remains
tepid amid ample supplies.
The average LNG price for November delivery into north-east
Asia was at $13.00 per million British thermal units
(mmBtu), industry sources estimated, down from $13.10/mmBtu last
week.
The price for December delivery was estimated at
$13.30/mmBtu.
"Asia spot prices have held steady week-on-week (though)
decreasing slightly," said Go Katayama, LNG and natural gas
analyst at Kpler.
"The slight decline was driven by receding geopolitical
tensions and ample LNG supply to Asia."
Oil prices had eased on Tuesday on news of a possible
ceasefire between Israel and Iran-backed Hezbollah, though
Israeli strikes killed 22 people and injured over 100 in Beirut
on Thursday.
The conflict between Israel and Hezbollah erupted one year
ago when Hezbollah opened fire in support of Palestinian
militant group Hamas at the start of the Gaza war.
On LNG supply, train 2 at Australia's Ichthys LNG restarted
operations this week. It was previously taken offline in August
for inspection and repairs.
However, two trade sources said two production trains at
Petronas' Bintulu LNG Complex in east Malaysia are offline, with
one of them adding that trains 7 and 8 at the MLNG Tiga
production facility are the affected ones.
Petronas did not immediately respond to a request for
comment.
In Japan, Kansai Electric Power ( KAEPF ) will shut the No.3
reactor at its Mihama nuclear power station after discovering
two small holes in a pipeline, and Shikoku Electric Power ( SHEKF )
shut the Ikata No. 3 reactor due to a malfunction in
the equipment used to monitor fuel combustion.
Nuclear reactor shutdowns could lead to an increase in LNG
demand to fulfill power requirements in Japan.
In Europe, S&P Global Commodity Insights assessed its daily
North West Europe LNG Marker (NWM) price benchmark for cargoes
delivered in November on an ex-ship (DES) basis at $12.635/mmBtu
on Oct. 10, a $0.21/mmBtu discount to the November gas price at
the Dutch TTF hub.
Argus assessed the price for November delivery at
$12.610/mmBtu, while Spark Commodities assessed it at
$12.649/mmBtu.
"Prices in both key demand markets had been sliding... But a
sharp rise in European DES markets on Thursday wiped losses on
the week," said Samuel Good, head of LNG pricing at commodity
pricing agency Argus.
"Europe's gains on Thursday came from multiple drivers, not
least further extensions to Norwegian gas maintenance on the day
which is set to slow the ramping up of pipeline gas deliveries
to the region as it steps further into winter and towards the
peak heating demand period."
In LNG freight, Atlantic prices fell for a third straight
week to $45,000/day on Friday, while Pacific rates also declined
to $52,250/day, said Spark Commodities analyst Qasim Afghan.