👀 Ones to watch: The MOST undervalued shares to buy right nowSee Undervalued Shares

GLOBAL LNG-Asian LNG prices hit over 4-month high on firm Europe, U.S. gas prices

Published 07/08/2020, 04:30 pm
Updated 07/08/2020, 04:36 pm
© Reuters.
NG
-

* European and U.S. gas prices rise this week

* Gorgon LNG plant supply issues boost Asian prices

* Several buy tenders issued this week

By Jessica Jaganathan

SINGAPORE, Aug 7 (Reuters) - Asian spot liquefied natural gas (LNG) prices jumped to a more than four-month high this week, tracking firmer gas prices in Europe and the United States, and as major cities in North Asia face warmer-than-usual weather potentially boosting demand.

The average LNG price for September delivery into northeast Asia LNG-AS was estimated at about $3.10 per million British thermal units (mmBtu) this week, up 40 cents from the previous week.

Prices for cargoes to be delivered in October were estimated at about $3.50 per mmBtu.

"Market is bullish due to supply issues from Gorgon and also because European and U.S. gas markets are firm," said a Singapore-based LNG trader, referring to the delayed restart of a production line at the Chevron-operated LNG plant in Australia. maintenance on Train 2 of the Gorgon project began in late May, but a restart initially planned for mid-July has been delayed until early September.

The recent rise in spot prices has seen buyers snap up cargoes at prices that are still low compared with previous years, the trader said.

Prices across Europe rose this week on the back of lower Russian flows, while those at the Henry Hub in the United States gained on hotter-than-normal weather. Beijing and Shanghai are expected to see warmer-than-usual temperatures next week, according to Refinitiv weather data, potentially boosting demand for electricity as people switch on air conditioners.

Malaysia's Petronas sold a cargo from the Gorgon LNG plant for mid-September loading to Gunvor at about $2.90 per mmBtu, one industry source said.

PetroChina put in the lowest offer to a tender issued by Pakistan LNG for a mid-August cargo. and Papua New Guinea LNG plants sold September-loading cargoes at above $3 per mmBtu, while Nippon Steel bought a cargo at about $3 to $3.15 per mmBtu, traders said.

India's Reliance Industries and Indian Oil Corp, South Korea's PRISM Energy and KOMIPO, Japan's Tohoku Electric, and China's Shenzhen Energy were in the market looking for September to October cargoes, they said.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.