SIN GAPORE- Asian spot prices for liquefied natural gas (LNG) rose on the back of demand from China as at least two buyers sought cargoes for delivery ahead of winter, trade sources said.
The average LNG price for May delivery into Northeast Asia was estimated at about $7.30 per million British thermal units (mmBtu), up 35 cents from the previous week, they said.
China’s Sinopec bought 30 to 50 LNG cargoes for delivery into China over June this year to February next year at a discount to North Asian prices, they added.
“They are probably ensuring they don’t get caught short in winter if demand were to surge,” a Singapore-based trader said.
China’s ENN Energy was seeking 4 to 8 cargoes for delivery over July to February in a tender that closes early next week, a second source said. Thailand’s PTT likely bought a cargo for mid-May at about $7.20 to $7.35 per mmBtu while India’s Gujarat State Petroleum Corp (GSPC) bought a cargo for delivery in May at about $7.10 to $7.20 per mmBtu, sources said.
