Global LNG: Asian spot LNG prices ease as markets eye Trump-Putin meeting
The average LNG price for September delivery into north-east Asia was at $11.65 per million British thermal units (mmBtu), down from $11.90/mmBtu last week, industry sources estimated.
The contract for October delivery was estimated at $11.45/mmBtu.
'This (meeting) may not only be decisive for Ukraine but also for the fate of Russian sanctions and economic development between the two nations. It may not be surprising if Russia would open discussion on Arctic LNG 2, as it's clearest link to LNG markets,' said Klaas Dozeman, market analyst at Brainchild Commodity Intelligence.
Sanctioned by the United States, Russia's 19.8 million tons per annum (mtpa) Arctic LNG 2 terminal has had two of its threetrains installed and could quickly add to global supply if sanctions were loosened.
Conversely, Russia's Yamal and Sakhalin LNG export terminals export about 30 mtpa and could be subject to future sanctions if those were bolstered, said Martin Senior, head of LNG pricing at Argus.
Global LNG: Asian spot prices inch up on geopolitical, supply concerns
Geopolitics remain the wild card, said Arturo Regalado, senior LNG analyst at Kpler.
'A lack of progress could reignite concerns over tighter sanctions on Russian energy, as well as potential secondary U.S. tariffs on Russian oil and gas buyers,' he said.
While the weather has turned a slightly hotter again in Asia it has not attracted major spot purchases - partly due to the pressure on oil prices - which meant oil-indexed long term LNG contracts became competitive against spot purchases, Dozeman said.
Argus' Senior said that some Chinese demand has emerged, with Beijing Gas buying two cargoes below $12/mmBtu. The firm last year said that it viewed $12/mmBtu and above as too expensive for LNG imports.
Prices are seen lower next week as high Chinese inventories continue to keep north-east Asian spot demand soft, with stable Pacific supply and seasonal temperatures adding to the bearish tone, said Kpler's Regalado.
In Europe, gas prices at the Dutch TTF hub were trading in a narrow range on Friday with heatwave across the continent was starting to ease and as markets focused on the Trump-Putin meeting.
S&P Global Commodity Insights assessed its daily North West Europe LNG Marker (NWM) price benchmark for cargoes delivered in September on an ex-ship (DES) basis at $10.582/mmBtu on August 14, a $0.415 /mmBtu discount to the September futures price at the TTF hub.
Argus assessed the price at $10.540/mmBtu, while Spark Commodities assessed it at $10.534/mmBtu
The U.S. arbitrage to north-east Asia via the Cape of Good Hope is still incentivising U.S. cargos to deliver to Europe. Similarly, the arbitrage via Panama is pointing to Europe, said Spark Commodities analyst Qasim Afghan.
Global LNG freight rates remained relatively steady, with the Atlantic rates assessed at $36,000/day and Pacific rates at $33,250/day, Afghan added.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Express Tribune
2 hours ago
- Express Tribune
PM inaugurates Chinese-led Special Economic Zone, welcomes $100m investment
Prime Minister Shehbaz Sharif meets the delegation of Chinese garments group, Challenge Fashion Private Limited, in Islamabad on August 15, 2025. Photo: Radio Pakistan Prime Minister Shehbaz Sharif on Friday inaugurated the Challenge Group Special Economic Zone (SEZ) and welcomed a $100 million investment by the Chinese garments giant, Challenge Fashion Private Limited, aimed at boosting Pakistan's textile exports and industrial capacity, Radio Pakistan reported. Speaking during a meeting with a delegation from the Chinese group, led by Chairman Huwang Weiguo, he expressed Pakistan's commitment to elevating its strategic and economic partnership with China to greater heights. 'Pakistan and China enjoy a time-tested friendship that has stood resilient through every challenge,' PM Shehbaz said. 'We are pleased to see our economic relations grow stronger, and we welcome more Chinese industries to set up operations in Pakistan,' he added. Also Read: Torrential rains claim 146 lives in K-P, five die in rescue helicopter crash Sharif lauded the Chinese firm's continued confidence in the Pakistani market, noting that Challenge Fashion Group has already invested $17 million in the country since 2014. The new Special Economic Zone, he said, will serve as a model for sustainable industrial development, facilitating technology transfer, skill enhancement, and job creation. He directed relevant authorities to extend all necessary support to ensure the swift operationalisation of the SEZ and reaffirmed the government's focus on advancing the industrial dimension of the China-Pakistan Economic Corridor (CPEC). The PM also highlighted Pakistan's keen interest in learning from China's expertise in the textile sector and announced that a China-Pakistan Business-to-Business Conference would soon be held in China to encourage private sector collaboration. Briefing the premier, the Challenge Group delegation shared that the $100 million investment over the next five years is expected to generate textile exports worth $400 million. Chairman Weiguo thanked the PM for the warm reception and hospitality, saying the group was committed to deepening its engagement with Pakistan's growing textile sector.
Business Recorder
2 hours ago
- Business Recorder
Dow briefly hits record high on UnitedHealth's gains; data in focus
The blue-chip Dow briefly hit a record high on Friday, as UnitedHealth's shares jumped after Berkshire Hathaway raised its stake in the health insurer, while investors assessed mixed data to gauge the Federal Reserve's monetary policy path this year. UnitedHealth Group gained 11.6% to hit a more than two-month high after Warren Buffett's company revealed a new investment in the health insurer, while Michael Burry's Scion Asset Management also turned more bullish on the company. Rising costs in the broader healthcare sector and an about 40% slump in heavyweight UnitedHealth's shares this year have left the Dow lagging its Wall Street peers on the road to record highs. The price-weighted index last scaled an all-time high on December 4. This week, however, the healthcare sector is the top performer on the S&P 500 and is on track for its best weekly performance since October 2022. Other insurance stocks Centene and Molina gained 5.2% each. A report showed retail sales in July rose as expected, but the University of Michigan's index tracking consumer confidence fell more than expected to 58 as inflation expectations rise. 'As long as consumer spending holds up and companies are able to retain workers because of that robust spending, the flywheel can continue to spin, pushing corporate profits and stock prices higher,' said Chris Zaccarelli, chief investment officer for Northlight Asset Management, speaking on the retail sales figures. At 10:11 a.m. ET, the Dow Jones Industrial Average rose 99.11 points, or 0.22%, to 45,011.45, the S&P 500 lost 7.39 points, or 0.11%, to 6,461.15 and the Nasdaq Composite lost 30.70 points, or 0.14%, to 21,681.10. Wall Street's main U.S. stock indexes are on track for their second week of gains, buoyed by expectations that the Fed could restart its monetary policy easing cycle with a 25-basis-point interest rate cut in September. The central bank last lowered borrowing costs in December and said U.S. tariffs could add to price pressures. However, recent labor market weakness and signs that tariff-induced inflation was yet to reflect in headline consumer prices have made investors confident of a potential dovish move next month. Still, Chicago Fed President Austan Goolsbee said recent data reports showed a stagflationary impulse from tariffs on the economy. On the trade front, U.S. President Donald Trump said he would unveil tariffs on steel and semiconductors next week. Applied Materials tumbled 11.3% after the chip equipment maker issued weak fourth-quarter forecasts. Intel rose 3% after a report said the Trump administration was in talks for the U.S. government to potentially take a stake in the chipmaker. Attention was also on a meeting between Trump and Russian counterpart Vladimir Putin that markets hope could pave the way for a resolution to the Ukraine conflict. The meeting will take place at 1900 GMT. Declining issues outnumbered advancers by a 1.22-to-1 ratio on the NYSE and a 1.31-to-1 ratio on the Nasdaq. The S&P 500 posted 8 new 52-week highs and no new lows while the Nasdaq Composite recorded 52 new highs and 45 new lows.
Business Recorder
2 hours ago
- Business Recorder
Toronto stocks subdued as investors await pivotal US-Russia meet
Canada's main stock index was flat on Friday as investors awaited a high-stakes meeting between Donald Trump and Russian leader Vladimir Putin on a potential path to ending the war in Ukraine. The Toronto Stock Exchange's S&P/TSX composite index was up 0.03% at 27,924.45 points. Among TSX sub-indexes, healthcare led weekly gains after a 3.7% rise on the day, boosted by a 37% weekly jump in Bausch Health Companies, its biggest rise since May 2023. Materials was the biggest drag, down 0.5%, as gold prices traded with caution ahead of the Trump-Putin talks. The stage was set for the U.S.-Russia summit in Alaska, scheduled for 11 a.m. Alaska time (1900 GMT), to discuss a ceasefire in Ukraine that Washington views as a potential path to ending Europe's deadliest war since World War Two. Trump said a second summit involving Ukrainian President Volodymyr Zelenskiy could follow if the talks go well. 'Short-term investors are hoping at least the meeting brings some kind of ceasefire or at least have continuous talks aswe're moving towards the end of the summer,' said Michael Constantino, CEO at Webull Canada. TSX's moves also mimicked Wall Street's benchmark S&P 500 index, which was largely flat. However, the blue-chip The Dow Jones Industrial Average took the spotlight as it hit an all-time intraday high. Despite the tepid moves, ongoing expectations for U.S. Federal Reserve easing have kept Canadian equities on track to finish the week higher. The TSX is up 0.5% so far this week. Data on Friday showed Canadian factory sales grew 0.3% in June from May, led by petroleum, coal and food products, while wholesale trade rose 0.7% on gains in food, beverage and tobacco. South of the border, retail sales rose by an expected 0.5% in July, but a spike in import prices raised concerns that U.S. tariffs could fuel inflation in the months ahead.
