AVN 67.05 Increased By ▲ 1.85 (2.84%)
BAFL 31.05 Increased By ▲ 0.31 (1.01%)
BOP 4.88 Increased By ▲ 0.08 (1.67%)
CNERGY 3.78 Increased By ▲ 0.07 (1.89%)
DFML 14.49 Increased By ▲ 0.28 (1.97%)
DGKC 41.61 Increased By ▲ 0.56 (1.36%)
EPCL 46.22 Decreased By ▼ -0.23 (-0.5%)
FCCL 11.63 Increased By ▲ 0.23 (2.02%)
FFL 5.11 Increased By ▲ 0.06 (1.19%)
FLYNG 5.80 No Change ▼ 0.00 (0%)
GGL 10.40 Increased By ▲ 0.07 (0.68%)
HUBC 67.54 Increased By ▲ 0.67 (1%)
HUMNL 5.77 Increased By ▲ 0.06 (1.05%)
KAPCO 28.00 Increased By ▲ 0.24 (0.86%)
KEL 2.29 Increased By ▲ 0.09 (4.09%)
LOTCHEM 25.06 Increased By ▲ 0.16 (0.64%)
MLCF 21.67 Increased By ▲ 0.23 (1.07%)
NETSOL 86.06 Increased By ▲ 2.46 (2.94%)
OGDC 92.38 Increased By ▲ 6.48 (7.54%)
PAEL 11.06 Increased By ▲ 0.05 (0.45%)
PIBTL 4.23 Increased By ▲ 0.01 (0.24%)
PPL 80.15 Increased By ▲ 5.67 (7.61%)
PRL 13.64 Increased By ▲ 0.21 (1.56%)
SILK 0.89 Decreased By ▼ -0.03 (-3.26%)
SNGP 43.47 Increased By ▲ 3.07 (7.6%)
TELE 5.93 Increased By ▲ 0.07 (1.19%)
TPLP 15.82 Increased By ▲ 0.42 (2.73%)
TRG 114.88 Increased By ▲ 3.47 (3.11%)
UNITY 13.76 Increased By ▲ 0.01 (0.07%)
WTL 1.16 Increased By ▲ 0.02 (1.75%)
BR100 4,124 Increased By 87 (2.16%)
BR30 14,930 Increased By 518.1 (3.59%)
KSE100 41,191 Increased By 719.6 (1.78%)
KSE30 15,494 Increased By 331.4 (2.19%)
Follow us

LONDON: Asian spot liquefied natural gas (LNG) prices eased this week as concerns about a tight market eased after the resumption of Russian gas flows via Nord Stream 1 after its 10-day maintenance.

The average LNG price for September delivery into north-east Asia was estimated at $38 per million British thermal units (mmBtu), down $2.5 or 6.2%, from the previous week, industry sources said.

“The restart of Nord Stream will have a dampening effect on LNG prices. Now that Russian gas is flowing again towards Germany -even if it is only at 40%- it would give some relief to the need of LNG imports in order to fill the (European) gas inventories in time,” said Hans van Cleef, senior energy economist at ABN AMRO.

“(However) It is expected that Russia will most likely come up with new arguments which will result in lower gas exports towards Europe during the coming weeks. On top of that, even when inventories are filled in time, European demand for LNG will remain very high during the whole winter,” he added.

Global LNG: Asia spot prices stay high on summer demand, Nord Stream concerns

In Europe, S&P Global Commodity Insights assessed LNG prices on a delivered ex-ship (DES) basis into north-west Europe (NWE) at $38.233/mmBtu on July 21, a discount of $8.95/mmBtu to September prices at the Dutch gas hub.

The competition between Europe and Asia at a time when global LNG supply is tight has recently pushed Asian LNG prices to a four-month high and close to record level seen in December at $44.35/mmBtu.

This recent decline in prices may not be sustainable, with winter pricing still remain near mid $40 levels. Edmund Siau, LNG analyst at Consultancy FGE said that while the resumption of Nord Stream 1 flows to pre-maintenance levels were roughly in line with the market’s expectations, the fears of a future supply cut remain.

In the second quarter of 2021, Europe had imported 23% of global LNG and around 8% of the global market shifted from Asia to Europe from Q2 2021 to Q2 2022, according to an LNG report by data intelligence firm ICIS.

However; S&P Global Commodity Insights said that LNG cargo prices into Europe have started to trade below North Asia derivative prices, which - on July 21- were around $40.70/mmBtu for September delivery, and around $42/mmBtu for October delivery.

“This could point to the US-North Asia arbitrage opening up, pulling Atlantic Basin LNG cargoes outside of the region, into Asia instead” S&P analysts said.

Japanese and Korean players remained active in the spot market to meet summer demand as Northeast Asian countries continue to experience above-average summer temperatures.

Korea’s KOGAS concluded a large winter strip purchase of 12 cargoes and was reportedly seeking more, according to consultancy Trident LNG.

Japan’s Nippon Steel Corp, the world’s second-largest steelmaker, recently bought an LNG shipment at the highest price ever paid in the country.

Comments

Comments are closed.

Global LNG: Asia spot prices ease as Nord Stream 1 flows resume; upside risk remains

Rupee up 0.46%, ends day at 275.30 against US dollar

KSE-100 jumps over 700 points amid return of positive sentiment

Second hike in two weeks: Honda Atlas jacks up car prices by up to Rs550,000

PM Shehbaz announces aid for quake-hit Turkiye

India opens its largest helicopter factory in new defence push

Govt projection of achieving $3bn current account surplus in FY23 ‘unrealistic’: PBC

PTI ready to set aside differences for peace in country: Asad Qaiser

IHC bars Sindh, Balochistan police from taking action against Sheikh Rashid

Govt schedules All Parties Conference for February 9

Kohinoor Textile board recommends buyback of 30 million ordinary shares