SINGAPORE—Asian spot liquefied natural gas (LNG) prices were flat last Friday 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 US-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.
Argus assessed the price for July delivery at $11.30/mmBtu, while Spark Commodities assessed the June price at $11.175/mmBtu.
