Latest news with #NorthWestEuropeLNGMarker
Business Recorder
a day ago
- Business
- Business Recorder
Global LNG: Asian spot prices flat as weak demand, rising Europe supply caps gains
SINGAPORE: Asian spot liquefied natural gas (LNG) prices were flat this week after three weeks of gains, as low demand from Asian buyers and increased supply in Europe capped gains. The average LNG price for July delivery into north-east Asia was at $12.40 per million British thermal units (mmBtu), industry sources estimated. Despite extremely weak production at Malaysia's Bintulu export terminal, which had been undergoing maintenance and delaying shipments, demand in Asia has also been soft with limited appetite this week, said Martin Senior, head of LNG pricing at Argus. 'Prices (are) still out of reach of price sensitive buyers in Asia, with limited requirements posted this week,' he said. Buying interest seems to be stemming primarily from trading houses and portfolio majors, added Masanori Odaka, senior analyst at Rystad Energy. 'If prices fall another $1/mmBtu, then we will see interest from some Asian buyers,' he said, adding that while the arbitrage for U.S.-sourced LNG to Asia is closed this week, factoring in full shipping, the arbitrage for Nigeria supply to Asia is open. S&P Global Commodity Insights assessed its daily North West Europe LNG Marker price benchmark for cargoes delivered in July on an ex-ship basis at $11.211/mmBtu on May 29, a $0.52/mmBtu discount to the July gas price at the Dutch TTF hub, with ample waterborne LNG cargoes and pipeline supply easing sentiment. Global LNG: Asian spot LNG prices rise to two-week high amid renewed demand Argus assessed the price for July delivery at $11.30/mmBtu, while Spark Commodities assessed the June price at $11.175/mmBtu. 'Improving renewables supply and recovering pipe-gas flows from Norway to the continent worked in tandem with an influx of LNG to meet the current demand across Europe,' said Aly Blakeway, manager of Atlantic LNG at S&P Global Commodity Insights. 'For now, European demand remains relatively sluggish with procurements of LNG and the pace of injections seeing a relative slowdown on the week.' Meanwhile, the U.S. arbitrage to northeast Asia via the Cape of Good Hope decreased this week, but still pointed towards Europe, said Spark Commodities analyst Qasim Afghan. The U.S. arbitrage to northeast Asia via Panama closed out for the first time in over three weeks, and is now also marginally pointing to Europe. In LNG freight, Atlantic rates dropped for a fourth straight week to $29,500/day on Friday, while Pacific rates held steady at $20,750/day, he added.
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.
Yahoo
11-04-2025
- Business
- Yahoo
GLOBAL LNG-Asian spot prices slip to 8-month low on weak demand, recession concerns
By Emily Chow SINGAPORE (Reuters) - Asian spot liquefied natural gas (LNG) prices slid to an over eight-month low this week, weighed by weak demand, high stocks and concerns of a global recession triggered by U.S. President Trump's implementation of worldwide tariffs. The average LNG price for May delivery into north-east Asia was at $12.50 per million British thermal units (mmBtu), the lowest level since late July, industry sources estimated. The June delivery price was estimated at $11.30/mmBtu. "Asian LNG prices are under pressure amid weak seasonal demand, high inventories and recession concerns tied to elevated U.S.-China trade tensions," said Kpler analyst Go Katayama, referring to stockpiles in Japan and Korea. While the 90-day tariff pause by the U.S. has sparked optimism, it is limited, and the continuation of tariffs on Chinese goods keeps market sentiment cautious, he added. "Restocking in Northeast Asia remains subdued and is unlikely to pick up unless prices drop below $12/mmBtu or weather forecasts shift hotter." Trump's sweeping tariffs on dozens of countries roiled global markets this week, spurring concerns of a recession and an escalating trade war between China and the United States. LNG importers in China, the world's top buyer of the fuel, are re-selling U.S.-sourced cargoes as the tit-for-tat tariffs drive up import costs. China's halt in U.S. LNG imports is likely to continue, while muted gas demand growth will curb incremental LNG demand, said Rystad analyst Wei Xiong. "The ongoing trade tensions and higher tariffs may heighten the downside that the industrial sector has been facing, as the export economy is likely to slow," she said. In Europe, S&P Global Commodity Insights assessed its daily North West Europe LNG Marker (NWM) price benchmark for cargoes delivered in May on an ex-ship (DES) basis at $10.127/mmBtu on April 10, a $0.805/mmBtu discount to the May gas price at the Dutch TTF hub. Argus assessed the price for May delivery at $10.195/mmBtu, while Spark Commodities assessed it at $10.184/mmBtu. "European demand has still held strong relative to Asian demand during the price fall this week, with the west African inter-basin arbitrage holding closed, as Angola LNG sold a spot cargo to France instead of Asia," said Martin Senior, head of LNG pricing at commodities pricing agency Argus. Meanwhile, the U.S. front month arbitrage to north-east Asia via the Cape of Good Hope briefly reached breakeven levels on Monday amid the U.S. tariff announcements, before closing out and pointing to Europe again, said Spark Commodities analyst Qasim Afghan. In LNG freight, Atlantic rates dropped for a third week to $22,500/day on Friday, he added, while Pacific rates fell to $24,750/day. Sign in to access your portfolio
Reuters
11-04-2025
- Business
- Reuters
Asian spot prices slip to 8-month low on weak demand, recession concerns
SINGAPORE, April 11 (Reuters) - Asian spot liquefied natural gas (LNG) prices slid to an over eight-month low this week, weighed by weak demand, high stocks and concerns of a global recession triggered by U.S. President Trump's implementation of worldwide tariffs. The average LNG price for May delivery into north-east Asia was at $12.50 per million British thermal units (mmBtu), the lowest level since late July, industry sources estimated. The June delivery price was estimated at $11.30/mmBtu. "Asian LNG prices are under pressure amid weak seasonal demand, high inventories and recession concerns tied to elevated U.S.-China trade tensions," said Kpler analyst Go Katayama, referring to stockpiles in Japan and Korea. While the 90-day tariff pause by the U.S. has sparked optimism, it is limited, and the continuation of tariffs on Chinese goods keeps market sentiment cautious, he added. "Restocking in Northeast Asia remains subdued and is unlikely to pick up unless prices drop below $12/mmBtu or weather forecasts shift hotter." Trump's sweeping tariffs on dozens of countries roiled global markets this week, spurring concerns of a recession and an escalating trade war between China and the United States. LNG importers in China, the world's top buyer of the fuel, are re-selling U.S.-sourced cargoes as the tit-for-tat tariffs drive up import costs. China's halt in U.S. LNG imports is likely to continue, while muted gas demand growth will curb incremental LNG demand, said Rystad analyst Wei Xiong. "The ongoing trade tensions and higher tariffs may heighten the downside that the industrial sector has been facing, as the export economy is likely to slow," she said. In Europe, S&P Global Commodity Insights assessed its daily North West Europe LNG Marker (NWM) price benchmark for cargoes delivered in May on an ex-ship (DES) basis at $10.127/mmBtu on April 10, a $0.805/mmBtu discount to the May gas price at the Dutch TTF hub. Argus assessed the price for May delivery at $10.195/mmBtu, while Spark Commodities assessed it at $10.184/mmBtu. "European demand has still held strong relative to Asian demand during the price fall this week, with the west African inter-basin arbitrage holding closed, as Angola LNG sold a spot cargo to France instead of Asia," said Martin Senior, head of LNG pricing at commodities pricing agency Argus. Meanwhile, the U.S. front month arbitrage to north-east Asia via the Cape of Good Hope briefly reached breakeven levels on Monday amid the U.S. tariff announcements, before closing out and pointing to Europe again, said Spark Commodities analyst Qasim Afghan. In LNG freight, Atlantic rates dropped for a third week to $22,500/day on Friday, he added, while Pacific rates fell to $24,750/day.
