RIO DE JANEIRO- Asian spot prices for liquefied natural gas (LNG) jumped this week on the back of strong demand to restock gas inventories in Europe and Asia, industry sources said.
The average LNG price for June delivery into Northeast Asia LNG-AS was estimated at about $8.85 per million British thermal units (mmBtu), up $0.20 from the previous week, industry sources said.
Demand from China and Japan has remained strong as both countries re-stock in early preparation for winter, according to research firm Rystad Energy.
In the Atlantic Basin, LNG demand was also solid as European buyers replenished stock depleted when prices reached near record levels during winter.
“The market is tight, with strong demand” said Carlos Torres Diaz, head of gas and power markets research at Rystad, by phone from Oslo.
“European prices also rose proportionally more than in Asia, making it less attractive for US exporters to travel all the way to China or Japan.”
The spread between Asian prices and the TTF reference index in Europe, which closed at $7.99 per mmBtu this week, narrowed to less than $1 – the difference which usually starts to make the longer trip from the Atlantic basin to Asia attractive, Diaz said.
