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Business Recorder
3 days 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
25-04-2025
- Business
- Business Recorder
Global LNG: Asian spot prices hold at 1-year low as demand remains tepid
SINGAPORE: Prices of Asian spot liquefied natural gas (LNG) inched up this week amid production outages in Asia and Europe, but were still hovering at nearly one-year lows on overall tepid demand. The average LNG price for June delivery into north-east Asia was at $11.80 per million British thermal units (mmBtu), estimated industry sources, up from $11.50/mmBtu last week which were its lowest levels since mid-May. There are limited buyers for prompt cargoes, with Chinese and Indian importers taking a back seat as prices are above $11.00/mmBtu, said Argus head of LNG pricing Martin Senior, adding that South Korea is currently the main spot buyer in Asia. 'South Korean demand has stayed strong, with stocks held by the country's state-owned Kogas last heard to be around 20 percent full, which has prompted buying interest not only from Kogas, but also from Komipo, Kospo and Prism,' he said. 'Spot prices are below Kogas' domestic tariff, meaning it can be profitable for private importers to buy cargoes.' On supply, the situation remains healthy despite the recent outage at Petronas' Bintulu LNG complex, said Siamak Adibi, director for gas and LNG supply analytics at FGE. Global LNG: Asian spot prices hold at 1-year low amid supply disruptions Equinor's Hammerfest terminal, Europe's largest LNG export facility, also went offline on Tuesday for planned annual maintenance until July 19. Exports from Venture Global's Plaquemines plant in the U.S. have reached 1 million tons per month, while BP has loaded its first cargo from the Greater Tortue Ahmeyim project offshore Mauritania and Senegal, said Adibi. 'We also expect the startup of LNG Canada from mid-year and a ramp-up in supply from Corpus Christi,' he added, referring to Cheniere Energy's plant in the U.S. In Europe, S&P Global Commodity Insights assessed its daily North West Europe LNG Marker price benchmark for cargoes delivered in June on an ex-ship basis at $10.49/mmBtu on April 24, a $0.70/mmBtu discount to the June gas price at the Dutch TTF hub. Argus assessed the price for June delivery at $10.58/mmBtu. Spark Commodities assessed the May price at $10.376/mmBtu. While Europe's gas demand has started to fall due to a seasonal trend, concerns surrounding storage injections for summer remain, said Florence Schmit, energy strategist at Rabobank London. 'The winter premium to summer contracts is still only trading at around 0.50 euros per megawatt hour, which is not enough to incentivize full injections,' she said. 'What's more, the EU's Russian fuel phaseout roadmap promises to squash any expectation of returning Russian pipeline supplies, driving European buyers further towards seaborne imports.' In LNG freight, Atlantic rates rose to $35,750/day on Friday, while Pacific rates slipped to $22,250/day, said Spark Commodities analyst Qasim Afghan. Despite pointing to Asia earlier this week, the U.S. front month arbitrage to north-east Asia via the Cape of Good Hope has closed out, now marginally pointing to Europe, he added.
Bloomberg
22-04-2025
- Business
- Bloomberg
US LNG Headed to Asia Fetches More Than Cargoes to Europe for First Time in 7 Months
Liquefied natural gas traders can make a better profit from selling US LNG cargoes in Asia than offering the fuel in Europe, an opportunity that opened up for the first time in seven months, according to data from analytics firm Spark Commodities. The US-to-Asia arbitrage window emerged following a series of production outages in Asia that have shrunk short-term supplies in the Pacific Basin, including in Malaysia, Brunei and Australia. Meanwhile, European gas prices have eased on storage refills and subdued demand.
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.
