SINGAPORE: Asian spot prices for liquefied natural gas (LNG) jumped this week to a more than six-month high, as warm temperatures drove up demand for the fuel used in electricity generation, industry sources said.
The average LNG price for September delivery into Northeast Asia was estimated at about $14.45 per metric million British thermal units (mmBtu), up $1.15 from the previous week, and the highest since mid-January, the sources said.
Temperatures in Tokyo, Seoul, and Beijing - among the top consumers of LNG - are expected to stay above average over the next two weeks, weather data from Refinitiv Eikon showed. Natural gas prices in the United States and Europe are also high amid hotter weather. China's Guangzhou Gas is seeking a cargo for delivery in August into the Dapeng terminal after earlier buying a cargo for delivery into Diefu at about $14.40 per mmBtu, sources said. Taiwan's CPC likely bought a cargo for delivery in September at about $14.50 per mmBtu, one source said.
Pakistan LNG is also seeking four cargoes for delivery in September, while Gail (India) issued a swap tender offering cargoes for loading from the United States and seeking cargoes for delivery into India, sources said.
Kuwait Petroleum Corp is seeking up to two cargoes for delivery in August, while Turkish state energy company Botas is seeking 15 cargoes for delivery between August and December.
Still, several companies offered cargoes this week, which capped price gains.
Malaysia's Petronas offered two cargoes for loading from the Gladstone plant in August, while ADNOC LNG has offered a cargo for loading in September, sources said.
Darwin LNG also offered a cargo for late-August to early-September loading, one of the sources said. Ichthys LNG in Australia likely sold an August-loading cargo at about $13.50 per mmBtu on a free-on-board (FOB) basis, the source added.
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