SINGAPORE- Platts, part of S&P Global Commodity Insights, on Monday launched Southeast Asia’s first price assessment for liquefied natural gas (LNG) cargoes amid growing demand for the super chilled fuel.
The Southeast Asia LNG (SEAM) cargo assessments are published as a differential to the Platts JKM, as well as on an outright basis, and reflect the value of cargoes delivered to Thailand, Singapore, Vietnam and the Philippines, said S&P in a statement.
The JKM, or the Japan-Korea-Marker, is the LNG benchmark price assessment for spot physical cargoes in Asia.
“Southeast Asia is expected to become a major hub for the consumption of LNG, with its changing energy mix and increasing power demand,” said Ciaran Roe, Global Director for LNG at S&P Global Commodity Insights.
Southeast Asia is expected to increase its use of LNG, as domestic gas reserves dwindle and power demand grows.
Three new LNG terminals received their commissioning cargoes this year in the region.
State-run PetroVietnam Gas bought Vietnam’s first cargo in May to test run the ThiVai LNG Terminal in the southern province of Ba Ria Vung Tau.
The Philippines first LNG cargo was imported by San Miguel Global Power Holdings Corp in April to commission the floating PHLNG terminal in Batangas City, while power producer First Gen Corp bought an LNG cargo to commission its floating storage and regasification unit (FSRU) in Batangas province in September.
S&P Global Commodity Insights forecasts Southeast Asia’s LNG imports to rise to 31 million metric tons in 2025, and to 56 million metric tons in 2030. This is up from an estimated 20.4 million metric tons in 2023 and 19.1 million metric tons last year.
This growth will be aided by an expansion in import capacity, with the number of regasification terminals expected to increase from 14 in 2023 to 24 by 2030.
Asian spot LNG prices rose more than $3 last week to a near nine-month high, supported by increased demand from northeast Asian buyers and amid tensions in the Middle East.
The average LNG price for December delivery into north-east Asia rose 23 percent to $17.90 per million British thermal units (mmBtu), industry sources estimated, its highest levels since early February.
“Japanese LNG stocks held by power utilities are ramping up, with the help of above-normal temperatures in the past few weeks. Chinese LNG imports jumped this week as the Golden Week holiday concluded and we could expect some additional restocking to take place ahead of the heating season,” said Ryhana Rasidi, LNG analyst at Kpler.
Supply concerns have eased now that a second round of Australian strikes have been called off, and “stable Asian prices” are forecast going forward, Rasidi added, as northeast Asian buyers are likely to prioritize stock building ahead of the winter season.
Demand for LNG in northeast Asia also ticked up in recent days as some buying interest emerged for December in the region, said Auguste Breteau, deputy head of LNG pricing at commodity pricing agency Argus.
“Several majors were heard to be long for November and short for December, according to market participants, which could push some cargoes to float into December,” said Breteau.
Japanese industry organizations are concerned about the Israel-Gaza conflict which could impact global LNG supplies.
