Latest news with #NorthWestEuropeLNGMarker
Business Recorder
11-07-2025
- 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
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.
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.
Business Recorder
30-05-2025
- 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.
