By Marwa Rashad
LONDON- Asian spot liquefied natural gas (LNG) prices fell this week amid weak demand and the availability of more supply in the spot market.
The average LNG price for January delivery into north-east Asia was at $14.50 per million British thermal units (mmBtu), down from $15.00/mmBtu last week, industry sources estimated.
The price for February delivery was estimated even lower at $13.50/mmBtu, the sources said.
“Rates in Asia have continued to slide due to weak demand, coupled with ample storage, and exacerbated by majors offering out for prompt into Q1 cargoes. We’re likely to see further dips as the winter has been relatively mild,” said Toby Copson, an independent LNG expert.
Samuel Good, head of LNG pricing at Argus, said that purchasing interest across Asia more broadly has weakened in the face of recent higher prices. There has also been more supply offered on the spot market both from the Asia-Pacific and also the Atlantic as sellers in the basin look to Asia amid weaker European demand.
In Europe, gas prices have fallen nearly 9 percent over the week on a sell-off in net long positions by investment funds and milder weather forecasts lowering heating demand.
“Incremental revisions to weather forecasts for north-west Europe over the rest of this month have weighed heavily on heating demand expectations, helping to ease concerns for the region’s quick underground gas storage withdrawals in recent weeks, which would have to be made up again next summer,” Good said.
EU gas storage inventories are currently around 80.16 percent full, data from Gas Infrastructure Europe showed, down from 91 percent at the same time last year and below the 5-year average of 83 percent. – Reuters
