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Business Recorder
04-07-2025
- Business
- Business Recorder
Global LNG: Asian spot prices fall on weak demand and rising supply
SINGAPORE: Asian spot liquefied natural gas (LNG) eased this week as subdued demand, rising supply and ample inventories weighed on prices, while the ceasefire between Israel and Iran reduced risk premiums. The average LNG price for August delivery into north-east Asia was $12.70 per million British thermal units (mmBtu), down from $13.10/mmBtu last week, industry sources estimated. 'Rising Pacific supply, high LNG inventories in China and South Korea, and weak industrial demand across China and India continued to pressure the market. The Iran–Israel ceasefire further eased geopolitical risk premiums,' said Kpler analyst Go Katayama, adding that output from Australia, Malaysia and Nigeria has increased. 'Looking ahead, the bearish outlook persists, with initial LNG Canada exports adding to supply length. While soft fundamentals dominate, further price declines could stimulate restocking, particularly in Japan.' LNG stockpiles held by major Japanese utilities fell to 2.15 million tons as of June 29, industry ministry data showed, as hotter weather drives cooling demand. This is down from 2.27 million tons the previous week but slightly above the five-year average of 2.1 million tons. 'Despite steady nuclear output, rising temperatures are outpacing non-gas generation capacity, potentially triggering incremental spot buying if the heatwave persists,' added Katayama. In Europe, 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 $11.142/mmBtu on July 3, a $0.435/mmBtu discount to the August gas price at the TTF hub. Global LNG: Asian spot LNG prices at 4-month high on supply concerns Argus assessed the price for August delivery at $11.19/mmBtu, while Spark Commodities assessed it at $11.175/mmBtu. 'A lack of a demand catalyst in the global LNG market failed to spark strong price reactions on the week with the supply picture balancing out as increased liquefaction from the U.S. and Qatar helped to improve supply fundamentals,' said Aly Blakeway, manager of Atlantic LNG at S&P Global Commodity Insights. 'With large supply hubs returning from maintenance and Asian demand still relatively on the sidelines, Europe continued to attract the brunt of cargoes as a closed arbitrage to Asia and heatwaves in the Mediterranean lured in waterborne LNG cargoes.' European prices have seen limited upside as demand in competing regions has been weak, while the European Union's less stringent storage targets have shifted supply risks to winter, said Xiaoyi Deng, deputy head of LNG pricing at Argus. 'This is reflected in increasing winter premiums over prompt deliveries in recent weeks,' said Deng. Meanwhile, the U.S. arbitrage to northeast Asia via the Cape of Good Hope is marginally pointing to Europe, while the arbitrage via Panama continues pointing to Asia for a fifth week, said Spark Commodities analyst Qasim Afghan. In LNG freight, Atlantic rates fell to $42,000/day, while Pacific rates eased to $40,000/day, he 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
Economic Times
02-05-2025
- Business
- Economic Times
LNG traders divert four US cargoes from Europe to Asia
Live Events (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel 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 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 (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 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 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 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 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 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 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 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.
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.
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.
