GLOBAL LNG-Asia prices improve on higher demand; eyes on Russia

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LONDON, Nov 11 (Businesshala) – Asia liquefied natural gas (LNG) prices rose this week after a three-week slump as demand surged in China following a sharp drop in temperatures, while market players eye Russia in Europe. was on supply.

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Average LNG Price for December Delivery in Northeast Asia LNG-AS Industry sources said that increased to $31.5 per metric million British thermal unit (mmBtu), up $2 or about 6.8% from the previous week.

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Emily McClain, senior gas market analyst at Rystad Energy, said in a report that remaining below-normal temperatures could run out of inventory faster and send buyers back to the spot market, where prices to arbitrage against TTF prices. needs to be kept high.

“While the market is breathing a sigh of relief, the healthy supply-side picture is balanced by the onset of colder weather in North Asia and Europe and increased shipwreck in the Panama Canal, and we are certainly not out of warm water yet. , “He said.

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Market players are eyeing an auction of transit capacity on Monday, which could indicate Russian supplies to Europe for the next months. Less gas flows from Russia and concerns over a political dispute with Belarus fueled fears of tight supplies this winter, and gas prices rose on Friday.

“The spread between JKM and TTF is increasing again, partly due to pressure on TTF based on hopes and early signs that Russia will indeed increase its exports towards NW-Europe and rising gas demand in Asia is now cooling. The season has started, said Hans van Cleef, senior energy economist at ABN AMRO.

The Pacific LNG freight spot rate hit a record high on Friday, surpassing $291,000 per day, data intelligence firm Spark Commodities said.

Elsewhere, Angola’s LNG project has launched a tender to sell LNG to Southeast Asia for November-December delivery.

The Electricity Generation Authority of Thailand (EGAT) is seeking LNG cargo for delivery in December, reissued from a previous tender in which EGAT called for two cargoes for delivery in November and December.

Reporting by Marwa Rashad; Editing Aditya Soni

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