SINGAPORE (Businesshala) – Asia liquefied natural gas (LNG) prices rose this week as the world’s top buyer China faced power shortages and low inventories in Europe increased competition for the super-chilled fuel.
Industry sources said the average LNG price for November delivery in Northeast Asia was around $37 per metric million British thermal unit (mmBtu), up about 16% from the previous week.
He said the December delivery price is expected to be around $38 per mmBtu.
Price agency S&P Global Platts’ Japan-Korea-marker (JKM), widely used as a benchmark in the spot market, on Wednesday hit a record high of $56.326 per mmBtu before easing later in the week. reached.
“The market is still very bullish for the winter and any part of the headline is fueling the sentiment,” said a Singapore-based trader.
Gazprom’s China-focused Amur gas processing plant in Russia’s Far East has halted operations after a fire broke out early Friday, a spokesman for the plant told Businesshala.
The broader implications were not immediately apparent, but the plant plays an important role in Russian gas exports to China, which has been hit by power shortages that have led to rationing of electricity across the country.
Bangladesh bought LNG cargo from Vitol at $35.89 per mmBtu for delivery in mid-October and another from Gunvor at $36.95 per mmBtu in late October, the highest price paid by the country for spot cargo. He is an official from the state-run Petrobangla. said.
Freight rates to ship LNG rose this week and are at a several-month high as the increase in LNG demand has increased the need to shift supplies to ships, sources said.
A Singapore source said production issues in Sakhalin and Indonesia are also supporting the prices.
An industry source said Pakistan may consider relying only on fixed supplies if the current spot prices remain high.