Asian spot LNG prices down amid low demand during Lunar New Year holiday
LONDON, Jan 31 (Reuters) - Asian spot liquefied natural gas (LNG) prices fell this week amid low demand during the Lunar New Year holiday in Asia, encouraging cargo diversions towards Europe where gas prices are at a 15-month high amid concerns over storage refilling.
The average LNG price for February delivery into north-east Asia was at $13.80 per million British thermal units (mmBtu), down from $14/mmBtu last week, industry sources estimated.
"Demand in Asia, particularly in China, has been weaker than the seasonal norm, which has been pulling rates down. We're seeing some strength going in to March deliveries," said Toby Copson, chairman at Davenport Energy Partners.
"However, overall sentiment remains muted so cargoes are being re-routed to Europe to capture premiums," Copson added.
High prices are also discouraging price sensitive buyers in south-east Asian markets.
"Asian LNG buyers are firmly out of the market for spot U.S. LNG cargoes, not only for next-month deliveries but also for future months," said Natasha Fielding, head of European gas, LNG and biomass pricing at Argus.
In Europe, colder weather and higher storage withdrawals continue to concern the market.
"Higher prices in Europe encouraged a burst of LNG tankers to divert away from Asia to Europe in early January, with at least six making mid-Atlantic course changes. We saw a seventh this week, with the LNG Juno changing course from Japan to Greece," said Alex Froley, senior LNG analyst at ICIS.
Malaysia's Petronas said, opens new tab that its operations in Miri and Bintulu ports remain uninterrupted despite severe flooding, easing market concerns over LNG supply disruptions.
"All eyes are currently fixated on the last straw that could quicken the pace of European storage withdrawals and leave sites so depleted after the winter that the only way forward will be fierce competition for LNG," said Florence Schmit, European energy strategist at Rabobank.
"Sentiment is very bullish at the moment and governments across Europe talking about subsidising storage injections during the summer only amplifies this trend," Schmit added.
S&P Global Commodity Insights assessed its daily North West Europe LNG Marker (NWM) price benchmark for cargoes delivered in March on an ex-ship (DES) basis at $15.31/mmBtu on Jan. 30, a $0.47/mmBtu discount to the March gas price at the Dutch TTF hub.
Argus assessed the price at $15.26/mmBtu, while Spark Commodities assessed the price for February delivery at $15.339/mmBtu.
The U.S. arbitrage to north-east Asia via the Cape of Good Hope for February has slightly narrowed, but still strongly signals that U.S. cargoes are incentivised to deliver to Europe rather than Asia, said Spark Commodities analyst Qasim Afghan.
Global LNG freight rates fell to new record lows this week as Atlantic rates dropped to $3,500/day on Friday, the lowest on record as increased vessel availability continue to apply downward pressure on rates. Pacific rates also droppped to $11,500/day, Afghan added.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Daily Mirror
7 hours ago
- Daily Mirror
Florian Wirtz to Liverpool transfer agreement close with final £118m compromise
Liverpool are expected to make a fourth and final official offer to Bayer Leverkusen to sign playmaker Florian Wirtz, with a compromise over the transfer fee concluding talks Liverpool are expected to make a FOURTH and final offer to Bayer Leverkusen in order to find a compromise on a transfer fee for Florian Wirtz. Liverpool have been locked in talks with the German club over the signing of Wirtz for weeks and negotiations are finally reaching an end game. The Reds submitted a third official bid for the playmaker on Friday made up of £100million plus £13m in add-ons. That would represent a British transfer record, eclipsing the £106.8m Chelsea paid Benfica for Enzo Fernandez in February 2023, but is still short of Leverkusen's asking price. Leverkusen have been holding out for £126.4m from the very start of negotiations, which have been led by Reds sporting director Richard Hughes, but it now seems as though a compromise can finally be reached. The German side have already sold Jeremie Frimpong to Liverpool for £29.5m and they have moved a step closer to receiving a major pay day from the Premier League champions. Leverkusen are expecting a fourth and final offer for Wirtz in the next 24 hours – and that they will shake hands for £118m. That is because Liverpool have made it clear that they won't go as high as £126m and Leverkusen don't want to overplay their hand. The club knows that Wirtz has his heart set on moving to Merseyside and that they need to cash in now. Considering Liverpool started out talks with a bid of £85m (€100m), Leverkusen will still be delighted with their business, if it does indeed get concluded. Wirtz, who could earn a whopping £355,000-a-week at Liverpool, is set to play for Germany in the Nations League third-place play-off against France in Stuttgart on Sunday and wants his future sorted soon. He chose Liverpool after holding talks with Bayern Munich and was impressed by the Reds' plans for him. HAVE YOUR SAY! Will Florian Wirtz be a success at Liverpool? Is he worth £118m? Comment below. If Liverpool do finally conclude talks with Leverkusen it will be the culmination of years of hard work. That's because former sporting director - and current Fenway Sports Group chief executive of football - Michael Edwards has been tracking him since 2020, when Wirtz was playing for Koln. Wirtz has been the stand-out player in the Bundesliga over the past few seasons, having helped Leverkusen win the title in 2023/24. The 22-year-old got 15 goals and 16 assists in 45 games across all competitions last season and is ready to leave Germany for a new challenge. Liverpool have money in the bank after a quiet summer before the 2024/25 season in which they brought in just one player: Federico Chiesa. However, with Frimpong signed and deals being negotiated for Wirtz and Bournemouth left-back Milos Kerkez, they know they must sell some players to balance the books. Darwin Nunez, Harvey Elliott, Andy Robertson and Chiesa are among those who could move on this summer after Caoimhin Kelleher completed his transfer to Brentford for £18m. Join our new WhatsApp community and receive your daily dose of Mirror Football content. We also treat our community members to special offers, promotions, and adverts from us and our partners. If you don't like our community, you can check out any time you like. If you're curious, you can read our Privacy Notice.
Daily Record
8 hours ago
- Daily Record
Sainsbury's announces huge change to shelves that customers may notice soon
Co-op are also due to implement the change by next year. Sainsbury's supermarkets have announced a major change that shoppers may soon notice on store shelves. The classic British supermarket has become the latest grocer to trial electronic shelf-edge labels (ESLs) in an aim to modernise its stores and improve operational efficiency. ESLs offer retailers the opportunity to update their prices in real time, which aims to reduce pricing errors and better manage promotional offers. For those who work in supermarkets, it will also save time, as paper labels will no longer need to be manually changed by staff. Speaking to the Grocer, a Sainsbury's spokesperson said that the store was trialling electronic shelf-edge labels in a small number of stores. However, they refused to share any further details on the pilot, which is being monitored for both customer experience and back-end efficiency gains. It has not yet been confirmed exactly which or how many stores will be taking place in the ESL trial, but Sainsbury's customers may soon notice the new digital labels while browsing the supermarket. The retailer began trialling the new electronic labels across three of its larger-format stores last year, including in its 'Future Store' in Witney, Oxfordshire, which was refitted in November 2023, the Express reports. The change comes as part of Sainsbury's 'Future Store' programme, which aims to modernise the supermarket's store operations and improve customer experience using digital tools. Sainsbury's is testing ESLs across a variety of its product categories, including beers, wines & spirits, health products and general merchandise, according to industry sources. The trials are said to be testing both the hardware used to display prices as well as evaluating the potential labour savings that could come from automated pricing updates. The retailer follows a number of other major UK supermarkets that have made the move towards using electronic labels in stores. Co-op recently also announced plans to add electronic labels to all of its 2,400 stores by next year. Co-op head of operations Steven Logue said: "With convenience at the heart of everything we do, Co-op is committed to continually exploring innovative technology that can improve how we operate. "The electronic labels have the potential to enhance product information and transparency, avoid paper waste, and make everyday tasks like picking online orders easier." Co-op recently fell victim to cyber attacks, along with M&S, which left store shelves empty. The chain was forced to shut down IT systems and slow deliveries after hackers attacked their servers. During the attack, the cyber criminals breached IT networks and stole customer and employee data. They claimed to have the private details of 20 million customers in Co-op's membership scheme. Although shelves were widely empty, the store has since recovered from the incident. Join the Daily Record WhatsApp community! Get the latest news sent straight to your messages by joining our WhatsApp community today. You'll receive daily updates on breaking news as well as the top headlines across Scotland. No one will be able to see who is signed up and no one can send messages except the Daily Record team. All you have to do is click here if you're on mobile, select 'Join Community' and you're in! If you're on a desktop, simply scan the QR code above with your phone and click 'Join Community'. We also treat our community members to special offers, promotions, and adverts from us and our partners. If you don't like our community, you can check out any time you like. To leave our community click on the name at the top of your screen and choose 'exit group'.
Scottish Sun
9 hours ago
- Scottish Sun
Elon Musk has PTSD & made a MISTAKE by helping Trump, his dad claims as he reveals verdict on what caused explosive feud
ELON Musk has "White House PTSD" and thinks he made a mistake by helping Trump get reelected, his dad has claimed. Errol Musk, 79, made the explosive remarks in Moscow, where he's set to appear at a Kremlin-backed forum organised by Putin's inner circle. Advertisement 9 Errol Musk claims his son Elon has 'PTSD from the White House' Credit: East2West 9 Musk Snr also believes the Tesla boss regrets helping Trump get reelected Credit: Reuters 9 Errol is currently in Moscow to appear at a Kremlin-backed forum Credit: East2West 9 Elon reportedly donated $288 million to Trump's 2024 campaign Credit: AFP It comes just days after his billionaire son's high-profile alliance with the US President imploded in a fierce online feud. The world's richest man — who reportedly donated $288 million to Trump's 2024 campaign and briefly served as a White House aide — has now turned on the president over his sweeping tax and spending bill. Elon even claimed on X that Trump was tied to disgraced paedophile Jeffrey Epstein, though the post was later deleted and the White House dismissed the allegation outright. Their bromance is now beyond repair. Advertisement On Sunday, Trump confirmed to NBC that he has no interest in making amends: 'I would assume so, yeah,' he said when asked if their relationship was over. 'I have no intention of speaking to him.' Now, the Tesla and SpaceX boss is said to be grappling with regret and fatigue from his turbulent stint in Washington. Musk Snr told Putin-controlled media: 'So at the moment, Elon is inclined to say that he's made a mistake.' 'Trump will prevail. He's the president, he was elected as the president. Advertisement 'Elon made a mistake, I think, but he's tired, he's stressed. He added: 'Five months of continuous stress, continuous, continuous stress, stress, stress. Trump crushes 'peace talk' hopes with Musk as he insists Elon has 'lost his mind' and 'vows to get rid of his Tesla' 'And then in the end, it's just him and Trump left… They still don't know what to do, so they fight with each other until they can come to normal conditions.' The South African businessman likened the split to a "marriage going wrong" and suggested his son was out of depth in the brutal political arena. Advertisement He told Russian outlet Izvestia: 'It happens in marriages, it happens in partnerships, it happens a lot . 'And people have to understand that at the moment, Elon is having second thoughts... 'He's not a great politician, he is still learning, he's a great tech innovator and so forth. 'But his politics is, as I've said before, is a swimming pool with no bottom, it's a swimming pool with no sides. Advertisement 'When you're in a swimming pool of politics, you've got to really know where to go. 'And he [Elon] doesn't realise that.' 9 Errol made the explosive claims on Putin-controlled media in Russia Credit: East2West 9 He said his son had a very stressful five months Credit: East2West Advertisement Errol added that Elon had been trying to "get everything right" with a recent bill, but clashed with Trump over what he saw as excessive Democratic spending concessions. 'But unfortunately, he doesn't realise that in order to get their votes in the Senate and the Congress, Trump has to do that,' he said. 'They are the only two people left in the arena… and they took to each other, which is understandable.' Errol's comments were made to Tsargrad TV — owned by Konstantin Malofeev, a businessman with alleged links to Russian military intelligence. Advertisement He praised Moscow, saying: 'Whoever designed this city is a true genius. These majestic buildings remind me of Ancient Rome.' He also dismissed Western portrayals of the Russian capital as 'nonsense.' 9 Trump and Musk's bromance fell through in a spectacular public feud online Credit: AFP 9 The feud erupted over Trump's 'big, beautiful bill,' which proposed stripping billions in government subsidies from Tesla Credit: AP Advertisement Errol will speak at the Future Forum 2050, organised by Malofeev and Putin ideologist and 'philosopher' Alexander Dugin. Meanwhile, Russia appears eager to capitalize on Musk's estrangement from the US political elite. Putin crony Dmitry Medvedev cheekily offered to mediate peace talks between 'D and E' — Trump and Elon— 'for a reasonable fee and to accept Starlink shares as payment.' Another Kremlin loyalist, ex-space chief Dmitry Rogozin, publicly offered Musk asylum. Advertisement 'You are respected in Russia. If you encounter insurmountable problems in the US, come to us and become one of us,' Rogozin wrote. Russia would offer him 'reliable comrades and complete freedom of technical creativity'.
