SINGAPORE- Asian spot liquefied natural gas (LNG) gained for the first time since end-August this week, supported by emerging spot demand across the region.
The average LNG price for December delivery into north-east Asia rose to $13.50 per million British thermal units (mmBtu), industry sources estimated, its first weekly gain in six weeks.
“Active buyers in the current spot buyers are primarily from South and Southeast Asia… Some Japanese players have also entered the market for LNG procurement for December deliveries,” said Siamak Adibi, director for gas and LNG supply analytics at consultancy FGE.
Despite the spot market activity, overall market sentiment has not changed dramatically, added Adibi, as European gas storage levels remain above 95 percent, reducing competition with Asia for cargo procurement.
“The prompt market sentiment remains bearish for now.”
Recent tenders include one from Thailand’s Hin Kong Power, B.Grimm Power and state-controlled all for cargoes delivered in December, said a Rystad Energy report.
“With Thailand’s monsoon season typically ending in October, reduced rainfall may mean less hydropower generation going forward, resulting in an increased reliance on gas-fired generation.”
The report added that Northeast Asian players are likely to see a slow start to the heating season as temperatures remain warmer than normal in the period leading up to the start of winter, while healthy storage levels could mute spot purchases from the region.
