Asian LNG prices stable as both demand and supply rise

LONDON: Asian spot liquefied natural gas (LNG) prices were almost steady this week, with several buyers looking for cargoes and the Sabine Pass plant in the United States resuming production after hurricane Laura.

The average LNG price for October delivery into northeast Asia was estimated at $4.55 per million British thermal units (mmBtu), $0.05 mmBtu above last week's level.

The price for November delivery was estimated at $4.75 per mmBtu.

Prices increased early in the week supported by demand from several buyers in the region but declined later on expectations of higher production.

The US Sabine Pass plant loaded its first cargo since Aug. 23 after it was shut due to hurricane Laura.

Another US plant shut due to the hurricane, Cameron LNG, has not yet resumed operations. A report from consultancy Energy Aspects said this week that the facility is expected to return by mid-October, adding that a ramp-up in production from other US plants will offset the halt of operations at Cameron.

Australia's production is also expected to increase, the report added.

Several buyers from China were on the market seeking for cargoes, industry sources said.

Those included Guangzhou Gas which has bought an October cargo at $4.80-4.90 per mmBtu and a November cargo at $5.20 per mmBtu, a trader said. [

Buy tenders also came from Thailand, Mexico, Pakistan, Kuwait, India and Colombia.

PTT International Trading, the Singapore-based trading arm of Thailand's state energy firm PTT, opened a tender seeking cargoes for delivery from December 2020 to March 2022.

Pakistan LNG is seeking two cargoes for delivery in November.

Mexican state power utility CFE opened a tender for one September cargo and one October cargo.

Kuwait Petroleum Corp (KPC) was seeking a cargo for delivery in October and Colombia's Calamari project was looking for a September cargo.

On the supply side, Angola LNG and Papua New Guinea export projects offered cargoes for September and October.