Spot prices of liquefied natural gas (LNG) in Asia surged to their highest level in more than 20 months this week as strong buying and lower than expected winter temperatures, trade sources said.
The average price of LNG delivered to Northeast Asia’s lng-as in December is estimated to be about $6.90 per million British thermal units (mmbtu), up $1.10 from the previous week.
Prices were boosted by a number of requests from Japanese, Chinese and Korean Buyers.
China’s unipec required 10 deliveries in the winter, while Shenzhen energy delivered them in December, traders said.
Kogas in South Korea may have tendered for at least six deliveries to be delivered between November and January at a price of less than $7 per mmbtu, while Japan’s Northeast Electric is seeking deliveries between late November and early December, they added.
One of them said that CPC companies in Taiwan may also have purchased several batches of goods delivered in December at a price of US $12 / mmbtu.
Cheniere energy may also have purchased the December delivery at $7.10 per millimeter of BTU, another source said.
Still, traders said that as orders for us LNG projects will not be cancelled in December, increased freight flows to Asia are likely to limit price increases.
Traders said Australia’s Pacific liquefied natural gas company (aplng) provided cargo shipped in November, while BHP Billiton provided northwest shelf cargo from late November to early December.
Darwin LNG is likely to supply cargo loaded from late November to early December, while ichthys LNG may sell November cargo for $6.10 to $6.30 FOB, they said.
Russia’s Sakhalin energy company also provided the cargo on December 25, while Nigeria’s LNG provided the cargo in mid November.
A source said Gail (India) may award a swap tender to sell goods to be loaded from the United States in January and to buy goods to be shipped to India.