Latest news with #BrainchildCommodityIntelligence
Business Recorder
2 days ago
- Business
- Business Recorder
Global LNG: Asian spot LNG prices inch up as hot weather boosts cooling demand
LONDON: Asian spot liquefied natural gas (LNG) prices edged higher this week as a heatwave in Japan and North Korea spurred cooling demand, while industrial demand in China remained subdued. The average LNG price for August delivery into north-east Asia was at $12.90 per million British thermal units (mmBtu), up from $12.70/mmBtu last week, industry sources estimated. The price for September delivery was estimated at $12.70/mmBtu. 'Prices have risen this week, supported by a heatwave in north-east Asia. Seoul recorded its hottest day since 2018 and stocks are being drawn down in both South Korea and Japan to meet stronger cooling demand,' said Martin Senior, head of LNG pricing at Argus. At least two Atlantic basin carriers have diverted away from Europe to Asia since the start of the month and a further two Qatari carriers have changed course from Europe to Asia as well, Senior said. Meanwhile, demand in South Asia and China remains muted with average cooling demand for the time of year and subdued industrial demand, given production prices and inflation numbers that have been published this week, said Klaas Dozeman, market analyst at Brainchild Commodity Intelligence. Dozeman said that import tariffs 'and the fluid situation around them could influence industrial demand over the coming weeks'. Global LNG: Asian spot prices fall on weak demand and rising supply In Europe, the gas market is stabilising. 'Gas prices may be finding a floor for summer. Europe needs to keep up sufficient competition to keep pulling in cargoes to refill its storage ahead of winter, even with the slight easing of regional targets to 80% from 90% before,' said Alex Froley, senior LNG analyst at data intelligence firm ICIS. There is the potential for some minor short-term bullishness if heatwaves continue in East Asia and if Japan and Korea's competition with Europe to secure fuel for summer power generation spikes, Froley said. However, fundamentals are becoming a little easier, with the second half of the year set to see an extra 7 million tons per annum (mtpa) coming on stream from the second phase of Plaquemines in the United States, as well as 14 mtpa from LNG Canada, he added. S&P Global Commodity Insights assessed its daily North West Europe LNG Marker (NWM) price benchmark for cargoes delivered in August on an ex-ship (DES) basis at $11.572/mmBtu on July 10, a $0.440/mmBtu discount to the August futures price at the TTF hub. Argus assessed the price for August delivery at $11.670/mmBtu, while Spark Commodities assessed it at $11.639/mmBtu. The U.S. arbitrage to north-east Asia via the Cape of Good Hope continues to point to Europe, while the arbitrage via Panama continues to point to Asia for the sixth week running, said Spark Commodities analyst Qasim Afghan. In the LNG freight market, Atlantic rates recorded the largest week-on-week decline since January and were assessed at $31,750/day on Friday, while Pacific rates decreased marginally to $38,750/day, Afghan added.
Business Recorder
13-06-2025
- Business
- Business Recorder
Global LNG: Asian spot prices gain on geopolitical tensions, rising temperatures
SINGAPORE: Asian spot liquefied natural gas (LNG) prices saw gains this week as rising temperatures in the northeast part of the region led to some pick-up in demand, and as escalating geopolitical tensions in the Middle East raised concerns about supply disruptions. The average LNG price for July delivery into north-east Asia was at $12.60 per million British thermal units (mmBtu), up from $12.30/mmBtu last week and its highest levels since early April, industry sources estimated. The average price for August delivery was estimated at $12.70/mmBtu. Following Israel's attack on Iranian military and nuclear targets, Iran showed interest in taking revenge to these assaults, expanding the geopolitical premium, said Klaas Dozeman, market analyst at Brainchild Commodity Intelligence. 'For gas and LNG, the real risk would be to disrupt Qatar's LNG exports for example via the Strait of Hormuz. Given earlier military threats, this still seems far away, at least for now.' Key exporter Qatar sends almost all of its LNG through the strait. Global LNG: Asian spot prices flat as weak demand, rising Europe supply caps gains Meanwhile, increased South Korean appetite helped to lift prices, as well as incremental demand from Taiwan and China ahead of the cooling demand season, said Martin Senior, head of LNG pricing at Argus. Many parts of China are experiencing above-seasonal average temperatures, which may increase gas-for-power demand through to end-June, while Japan is expecting a 70% probability for above-average temperatures until the end of the month, said Rystad Energy, citing Japan's Meteorological Agency. In Europe, 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 $11.895/mmBtu on June 12, a $0.445/mmBtu discount to the July gas price at the Dutch TTF hub. Spark Commodities assessed the price for July delivery at $11.815/mmBtu, while Argus assessed at $11.95/mmBtu. 'An open inter-basin arbitrage as well as strong Egyptian demand has increased competition for Atlantic basin cargoes for European buyers,' said Senior of Argus. 'One carrier diverted in the mid-Atlantic to Asia, and the vast majority of west African loadings so far this month have headed to Asia, showcasing the open arbitrage.' Egypt has reached agreements with several energy firms and trading houses to buy 150-160 LNG cargoes to meet power demand. Meanwhile, the U.S. arbitrage to northeast Asia via the Cape of Good Hope increased this week and is now only marginally pointing towards Europe, while the arbitrage via Panama continues pointing to Asia for a second week, said Spark Commodities analyst Qasim Afghan. In LNG freight, Atlantic rates rose for the first time in almost six weeks to $33,000/day, while Pacific rates held steady at $20,750/day, he added.
