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GLOBAL LNG-Asian spot LNG slips on tepid demand, ample supply
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GLOBAL LNG-Asian spot LNG slips on tepid demand, ample supply
Oct 11, 2024 4:27 AM

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.

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