ANL 34.10 Decreased By ▼ -0.15 (-0.44%)
ASC 13.65 Increased By ▲ 0.30 (2.25%)
ASL 23.40 Increased By ▲ 0.80 (3.54%)
AVN 85.60 Increased By ▲ 1.90 (2.27%)
BOP 7.70 No Change ▼ 0.00 (0%)
BYCO 9.44 Increased By ▲ 0.07 (0.75%)
DGKC 111.51 Increased By ▲ 1.31 (1.19%)
EPCL 48.99 Decreased By ▼ -1.90 (-3.73%)
FCCL 22.85 Increased By ▲ 0.09 (0.4%)
FFBL 25.47 Decreased By ▼ -0.23 (-0.89%)
FFL 15.33 Increased By ▲ 0.03 (0.2%)
HASCOL 8.94 Decreased By ▼ -0.06 (-0.67%)
HUBC 78.43 Decreased By ▼ -0.57 (-0.72%)
HUMNL 6.13 Increased By ▲ 0.29 (4.97%)
JSCL 19.14 Increased By ▲ 0.44 (2.35%)
KAPCO 40.50 Increased By ▲ 1.11 (2.82%)
KEL 3.72 Increased By ▲ 0.04 (1.09%)
LOTCHEM 14.20 Decreased By ▼ -0.15 (-1.05%)
MLCF 42.75 Increased By ▲ 0.45 (1.06%)
PAEL 30.90 Decreased By ▼ -0.17 (-0.55%)
PIBTL 9.52 Increased By ▲ 0.07 (0.74%)
POWER 8.61 Increased By ▲ 0.17 (2.01%)
PPL 82.50 Decreased By ▼ -0.80 (-0.96%)
PRL 23.09 Increased By ▲ 0.32 (1.41%)
PTC 9.00 Decreased By ▼ -0.20 (-2.17%)
SILK 1.38 Decreased By ▼ -0.02 (-1.43%)
SNGP 38.90 Increased By ▲ 0.31 (0.8%)
TRG 165.00 Increased By ▲ 1.78 (1.09%)
UNITY 35.80 Increased By ▲ 0.87 (2.49%)
WTL 1.53 Increased By ▲ 0.08 (5.52%)
BR100 4,846 Increased By ▲ 46.43 (0.97%)
BR30 24,817 Increased By ▲ 123.55 (0.5%)
KSE100 45,175 Increased By ▲ 231.06 (0.51%)
KSE30 18,470 Increased By ▲ 86.89 (0.47%)

Coronavirus
VERY HIGH
Pakistan Deaths
18,797
12024hr
Pakistan Cases
854,240
410924hr
Sindh
290,756
Punjab
316,334
Balochistan
23,186
Islamabad
77,684
KPK
123,150

LAUNCESTON, (Australia) The price of spot liquefied natural gas (LNG) for delivery to north Asia has started its traditional summer rally early this year as buyers fret about the potential for supply shortages when the peak demand season arrives.

The spot price rose to $8.85 per million British thermal units (mmBtu) in the week to April 30, up from $8.65 the prior week and the highest since Jan. 22.

The post northern winter low was $5.60 per mmBtu on Feb. 26, and working on the assumption that prices don’t dip in coming weeks, this would be a considerably earlier low than in the previous five years.

Spot LNG prices typically peak in the northern hemisphere winter and summer periods of high demand for heating and air-conditioning, respectively, with a shoulder season in between resulting in lower prices.

In 2020, the spot price reached its post-winter low point for the year in late May, while in 2019 it was in mid-June.

More significant has been the movement in the futures contracts traded in New York, which reflect the regional benchmark Japan Korea Marker, compiled by S&P Global Platts.

The front-month contract ended at $8.905 on Monday, the highest since Jan. 20, and up 53% since the low so far this year of $5.805 on Feb. 25.

The contracts for delivery for the summer months have also been gaining, with the July delivery future ending on Monday at $9.65 per mmBtu, up from $7.37 a month ago and $6.35 two months ago.

The September contract ended Monday at $9.70 per mmBtu, up 21.3% from $8.00 a month a ago and a gain of 33.3% from the $6.75 two months ago.

What the pricing seems to be showing is that LNG buyers in Asia aren’t taking any chances about the coming summer demand period, and don’t want any repeat of the surge in spot prices to record highs above $33 per mmBtu that happened when a colder than expected winter caused a spike in demand.

Several utilities in the world’s biggest buyers of LNG, namely Japan, China and South Korea, were caught short of the super-chilled fuel last winter, as the freezing temperatures collided with some supply outages in major exporters, such as Australia.

It appears that some buyers have already been increasing purchases, with China’s LNG imports in April estimated by Refinitiv at 6.48 million tonnes, up from 5.81 million in March and 20.4% higher than the 5.38 million from April 2020. Six LNG tankers have diverted away from India since April 20, changing the destination to northeast Asia, Europe and Kuwait instead, said Rebecca Chia, an analyst with data intelligence firm Kpler.