Latest news with #Froley
Business Recorder
23-05-2025
- Business
- Business Recorder
Global LNG: Asian spot LNG prices rise to two-week high amid renewed demand
LONDON: Asian spot liquefied natural gas (LNG) prices rose for the third week running to a two-week high amid renewed demand, weak production in Malaysia and as Egypt seeks to secure huge volumes for the rest of the year. The average LNG price for July delivery into north-east Asia was at $12.40 per million British thermal units (mmBtu), up from $11.75/mmBtu last week, industry sources estimated. 'The market has been on a rising trend since its recent lows at the start of the month, though overall it remains a long way down from its mid-February highs,' said Alex Froley, senior LNG analyst at data intelligence firm ICIS. Froley attributed the rise to buying interest from Asian importers including Bangladesh and Taiwan, and to reports of Egypt looking to secure large volumes over the rest of the year. The Asian market continues to monitor LNG supply outages in Australia and Malaysia, said Laura Page, head of LNG insight at data analytics firm Kpler. Page said that Australia's North West Shelf plant ceased LNG exports between May 16-22, while exports out of Malaysia's Bintulu complex have been on a steep downward trajectory. Russia and Bahrain in advanced talks over LNG supply deal 'While part of the reduction is due to planned maintenance, the severity of the decline suggests there may also be an unplanned issue affecting capacity,' she said. Martin Senior, head of LNG pricing at Argus, said that weekly loadings at Malaysia's Bintulu have fallen to 13-year low and a growing number of ships are holding off the shore of the facility waiting for production to pick up again. He added that hot weather forecasts for parts of north-east Asia and southern Europe could boost early summer cooling demand. In Europe, gas prices at the Dutch TTF hub rose this week on the back of Norwegian maintenance and worries about Ukraine peace talks which have not seen that much progress. 'Looking ahead, TTF prices could increase slightly as heavy pipeline maintenance continues in Norway, despite weather forecasts anticipating strong renewable generation and a gradual rise in temperatures across the continent,' Kpler's Page said. Europe's underground gas storage is building up reasonably comfortably and supply is increasing, ICIS' Froley said, adding that possible EU storage target reductions should prevent major price rises, although downside could be limited by potential new demand from Asian buyers entering the market as prices move lower. S&P Global Commodity Insights assessed its daily North West Europe LNG Marker (NWM) price benchmark for cargoes delivered in July on an ex-ship (DES) basis at $11.646/mmBtu on May 22, a $0.55/mmBtu discount to the July futures price at the TTF hub. Argus assessed the price for July delivery at $11.510/mmBtu, while Spark Commodities assessed the June price at $11.467/mmBtu. The U.S. arbitrage to north-east Asia via the Cape of Good Hope decreased this week but was still pointing towards Europe, while the arbitrage via Panama continues to point to Asia, said Spark Commodities analyst Qasim Afghan. In the LNG freight market, Atlantic rates dropped to $32,000/day on Friday, while Pacific rates dropped to $20,750/day, Afghan added.
Mint
02-05-2025
- Business
- Mint
LNG traders divert four US cargoes from Europe to Asia
SINGORE, - Four cargoes of liquefied natural gas headed for Europe changed course to Asia in the last two weeks, after European prices fell below the Asian benchmark and opened up an arbitrage for deliveries eastward, according to analysts and shipping data. More cargoes diverting from the Atlantic to the Pacific would increase competition between the two basins, in a year when Europe may need up to an extra 250 LNG cargoes to refill its depleted gas stores ahead of winter. A combination of improved netbacks to Asia and easing European price support, rather than stronger Asian demand, had led to a clear, if narrow, economic case for redirection, said Go Katayama, principal insight analyst at data analytics firm Kpler. "JKM premiums over TTF have widened, improving netbacks for U.S.-origin cargoes," he said. "This has reopened the arbitrage channel, particularly for June to July delivery windows." The Japan-Korea-Marker is the LNG benchmark price assessment for spot physical cargoes in Asia. The Dutch Title Transfer Facility is the benchmark for natural gas in Europe. Kpler data showed the Energy Innovator tanker, controlled by Germany's RWE, departed Freeport LNG in Texas on April 7. It was destined for Dunkirk, France before diverting towards the Cape of Good Hope on April 16. The Shell-controlled New Nature tanker also changed course from Europe to head south on April 24, after departing Sabine Pass LNG in Louisiana on April 16. Two more tankers have also seen later arrival dates, suggesting a switch in destinations from Europe to Asia which adds a couple of weeks' travel time, said Alex Froley, senior LNG analyst at data intelligence firm ICIS. The arrival date for the Orion Spirit tanker changed from April 24 to May 14, while the Pacific Success tanker's arrival date changed from April 22 to May 18, he said. "The estimated time of arrival on those suggests they switched from a two-week journey across the Atlantic to a longer journey to Asia." Kpler data shows the Orion Spirit and Pacific Success, both controlled by TotalEnergies, were initially bound for Dunkirk, France and Rostock, Germany respectively. Additionally, despite its proximity to Europe, the first loading from the Greater Tortue Ahmeyim project offshore Mauritania and Senegal on the British Sponsor tanker is heading towards Asia, added Froley. Kpler data shows BP's British Sponsor is on course for Singapore. "However, Europe should still continue to receive large amounts of LNG, and if storage injection rates start to slow, Europe would likely increase its prices a little to pull more cargoes back," said Froley, adding that Asian demand is not picking up strongly. "The change is more about the speed at which both markets have drifted lower in recent weeks on weaker economic expectations." Asian spot LNG prices had been holding at near one-year lows since mid-April as demand remained tepid. They were last at $11.80 per million British thermal units on April 25. The benchmark front-month contract at the Dutch TTF hub closed at 32.10 euros per megawatt hour on Thursday, or $10.62/mmBtu. It had closed at $10.64/mmBtu on April 25. This article was generated from an automated news agency feed without modifications to text. First Published: 2 May 2025, 01:24 PM IST
Time of India
02-05-2025
- Business
- Time of India
LNG traders divert four US cargoes from Europe to Asia
Four cargoes of liquefied natural gas headed for Europe changed course to Asia in the last two weeks, after European prices fell below the Asian benchmark and opened up an arbitrage for deliveries eastward, according to analysts and shipping data. #Pahalgam Terrorist Attack India's Rafale-M deal may turn up the heat on Pakistan China's support for Pakistan may be all talk, no action India brings grounded choppers back in action amid LoC tensions More cargoes diverting from the Atlantic to the Pacific would increase competition between the two basins, in a year when Europe may need up to an extra 250 LNG cargoes to refill its depleted gas stores ahead of winter. A combination of improved netbacks to Asia and easing European price support, rather than stronger Asian demand, had led to a clear, if narrow, economic case for redirection, said Go Katayama, principal insight analyst at data analytics firm Kpler. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Play War Thunder now for free War Thunder Play Now "JKM premiums over TTF have widened, improving netbacks for U.S.-origin cargoes," he said. "This has reopened the arbitrage channel, particularly for June to July delivery windows." Live Events The Japan-Korea-Marker (JKM) is the LNG benchmark price assessment for spot physical cargoes in Asia. The Dutch Title Transfer Facility (TTF) is the benchmark for natural gas in Europe. Kpler data showed the Energy Innovator tanker, controlled by Germany's RWE, departed Freeport LNG in Texas on April 7. It was destined for Dunkirk, France before diverting towards the Cape of Good Hope on April 16. The Shell-controlled New Nature tanker also changed course from Europe to head south on April 24, after departing Sabine Pass LNG in Louisiana on April 16. Two more tankers have also seen later arrival dates, suggesting a switch in destinations from Europe to Asia which adds a couple of weeks' travel time, said Alex Froley, senior LNG analyst at data intelligence firm ICIS. The arrival date for the Orion Spirit tanker changed from April 24 to May 14, while the Pacific Success tanker's arrival date changed from April 22 to May 18, he said. "The estimated time of arrival on those suggests they switched from a two-week journey across the Atlantic to a longer journey to Asia." Kpler data shows the Orion Spirit and Pacific Success, both controlled by TotalEnergies, were initially bound for Dunkirk, France and Rostock, Germany respectively. Additionally, despite its proximity to Europe, the first loading from the Greater Tortue Ahmeyim project offshore Mauritania and Senegal on the British Sponsor tanker is heading towards Asia, added Froley. Kpler data shows BP's British Sponsor is on course for Singapore. "However, Europe should still continue to receive large amounts of LNG, and if storage injection rates start to slow, Europe would likely increase its prices a little to pull more cargoes back," said Froley, adding that Asian demand is not picking up strongly. "The change is more about the speed at which both markets have drifted lower in recent weeks on weaker economic expectations." Asian spot LNG prices had been holding at near one-year lows since mid-April as demand remained tepid. They were last at $11.80 per million British thermal units (mmBtu) on April 25. The benchmark front-month contract at the Dutch TTF hub closed at 32.10 euros per megawatt hour on Thursday, or $10.62/mmBtu. It had closed at $10.64/mmBtu on April 25.
