Global LNG Asian LNG Prices Rise Due To Tightening European Market

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LONDON, Dec. 17 (Reuters) – Asian liquefied natural gas (LNG) prices have risen this week, despite weak demand from Asia, following strong gains in Europe as the gas market tightens ahead of the months of peak winter due to supply issues.

The average LNG price for February delivery in North East Asia reached $ 43.35 per million British thermal units (mmBtu), up $ 7.55, or 21.1%, from the week before, industry sources said.

“East Asian spot LNG is reacting to some local bearish factors with the terminal’s tanks considered near full. Europe, meanwhile, continues to rally behind developments regarding Nord Stream 2 and growing tensions in Ukraine, ”said Tom Marzec-Manser, head of gas analysis at the US intelligence firm. data CIHI.

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“The development linked to the TTF and the history of European gas will have an impact on Asian prices, with potential changes in Russian gas flows to Europe being a major factor which could take into account LNG volumes”, he added.

European gas prices remain near all-time highs amid lingering supply fears after French electricity giant EDF shut down some nuclear power plants following the discovery of flaws and after the German regulator said that the certification process for Russia’s new Nord Stream 2 pipeline would not be completed in the first half of 2022. read more

Asian spot prices have not fully replicated the TTF surge, which could encourage further LNG deliveries to Europe and partially balance the prevailing bullish sentiment, according to Rystad energy.

In a rare market development, reloading cargo from Japan headed to Europe this week on the JERA Enshu Maru vessel, signaling an opportunity for Europe to attract one-off cargoes, traders said. .

More freight has recently headed to the UK rather than the Netherlands as the former has multiple terminals with more capacity and slots.

“The price dynamics across Europe are now very attractive and traders will try to get as much cargo as possible. This means that capacity is a potential bottleneck leading where cargoes can end up, ”said Tamir Druz, Managing Director of Capra Energy Group.

Pacific LNG spot freight rates have fallen more than 40% from a week to $ 158,000 a day, said Henry Bennett of data intelligence firm Spark Commodities, adding that the collapse of the The JKM-TTF gap reduces the tariff incentive to move cargoes from the Atlantic basins to the Pacific basins. and reduced ton-miles.

The collapse in shipping prices, which hit a record high of $ 374,500 per day in November, reflects weak demand in Asia, with major Chinese and Japanese consumers staying away from the spot market due to the abundance of stocks in their countries.

Elsewhere in the market, the Thai PTT is looking for up to two shipments of LNG per month for delivery in January and February as part of a call for tenders closed on December 17. read more

Angola’s Liquefied Natural Gas (LNG) project has issued a tender on an ex-ship delivered (DES) basis to sell LNG for delivery Jan. 14-16 in the Atlantic Basin. Closing of the call for tenders on December 15 read more

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Reporting by Marwa Rashad; Editing by Amy Caren Daniel

Our standards: Thomson Reuters Trust Principles.


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