RIO DE JANEIRO- Asian spot prices for liquefied natural gas (LNG) rose this week as Europe and China sought supply ahead of the summer and as a vessel congestion at the Suez Canal tapered off, industry sources said.
The average LNG price for May delivery into Northeast Asia was estimated at about $6.95 per million British thermal units (mmBtu), up 15 cents from the previous week, traders said.
“Buyers in Europe are looking to refill inventories and China is securing supply for the Summer, which could also boost demand in the coming months,” a London-based trader said.
Cargos for delivery in the first half on June were around $7 mmBtu, according to industry sources, after a vessel congestion at the Suez Canal, the shortest shipping route between Europe and Asia, delayed cargo deliveries and pushed prices up.
LNG cargo transit has been slowly normalizing after the Ever Green container ship that became jammed diagonally across the canal for six-days was towed on Monday.