One sentence summary – Asian spot LNG prices have increased by $1 per mmBtu due to strong buying activity from China and India, easing inventory levels in Japan, and higher oil prices, while European LNG prices have declined due to increased supply levels in Norway and mild weather forecasts for northwest Europe.
At a glance
- Asian spot LNG prices have increased by $1 this week
- Strong buying activity from China and India is the primary reason for the rise
- Easing inventory levels in Japan and higher oil prices have also contributed to the increase
- Asian spot LNG prices for November delivery into northeast Asia have surged to $14 per mmBtu
- Lower LNG inventories among major Japanese power utilities have further contributed to the surge in Asian prices
Asian spot LNG prices have seen a $1 increase this week.
This rise is primarily due to strong buying activity from China and India.
Easing inventory levels in Japan and higher oil prices have also contributed to this increase.
Asian spot LNG prices for November delivery into northeast Asia have surged to $14 per mmBtu.
This is a $1 increase from the previous week’s average of $13.
The rise is attributed to increased demand from China and India, among other factors.
China’s Unipec, a major LNG importer, has acquired over 30 LNG cargoes through a tender process.
This proactive approach is aimed at meeting the anticipated winter demand and bolstering their trading supply pool.
India’s GAIL has issued a tender seeking an LNG cargo for October delivery.
This indicates their efforts to secure adequate supply for the upcoming month.
Lower LNG inventories among major Japanese power utilities have further contributed to the surge in Asian prices.
As of September 17, LNG inventories held by these utilities stood at 1.62 million tons.
This is below the 5-year average for the same period.
The recent hot weather in Japan has facilitated this decrease in stockpiles.
Above-average temperatures are expected to persist in the coming weeks.
Higher oil prices have acted as a temporary floor for LNG prices.
This has exerted additional upward pressure on the market.
Concerns over supply disruption have eased as strikes at Chevron’s two major LNG projects in Australia have been resolved.
This resolution brings stability to the LNG market and mitigates worries about potential supply shortages.
In contrast, the European LNG market has witnessed a slide in prices.
This is due to the easing supply tightness in Norway.
Gas production at Norway’s Troll A platform, which had undergone an extended maintenance period, has now resumed.
This has increased supply levels.
Weather forecasts for northwest Europe indicate a mild start to the winter season.
This could potentially limit early winter heating demand.
This forecast adds to the factors influencing the European LNG market.
Spot LNG freight rates continue to rally.
Atlantic and Pacific rates have climbed to $197,750 per day.
This comprehensive brief provides an in-depth understanding of the recent developments in the Asian and European LNG markets.
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|– Asian spot LNG prices rose $1 this week due to buying activity by China and India, easing inventory levels in Japan, and higher oil prices.
|The average LNG price for November delivery into northeast Asia rose to $14 per mmBtu from $13 the previous week.
– China’s Unipec bought over 30 LNG cargoes via a tender to meet winter demand and boost its trading supply pool.
– India’s GAIL issued a tender seeking an LNG cargo for October delivery.
– Lower LNG inventories among Japanese major power utilities contributed to the rise in Asian prices.
|– LNG inventories held by major Japanese power utilities fell to 1.62 million tons as of Sept. 17, lower than the 5-year average for the period.
– Hot weather in Japan drove the ease in stockpiles, with above-average temperatures expected in the coming weeks.
– Higher oil prices may act as a temporary floor for LNG prices.
– Strikes at Chevron’s two major LNG projects in Australia were resolved, easing concerns of supply disruption.
|– European LNG prices slid due to easing supply tightness in Norway as gas production restarted at the Troll A platform.|
|– Gas production at Norway’s Troll A platform resumed following extended maintenance.
– Weather forecasts for northwest Europe suggest a mild start to the winter, potentially limiting early winter heating demand.
– Spot LNG freight rates continued to rally, with Atlantic and Pacific rates climbing to $197,750/day.
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