BAFL 38.47 Increased By ▲ 0.02 (0.05%)
BIPL 17.49 Increased By ▲ 0.24 (1.39%)
BOP 3.97 Decreased By ▼ -0.10 (-2.46%)
CNERGY 3.04 Decreased By ▼ -0.04 (-1.3%)
DFML 16.26 Decreased By ▼ -0.29 (-1.75%)
DGKC 43.42 Decreased By ▼ -0.38 (-0.87%)
FABL 22.30 No Change ▼ 0.00 (0%)
FCCL 11.31 No Change ▼ 0.00 (0%)
FFL 6.44 Increased By ▲ 0.07 (1.1%)
GGL 9.27 Decreased By ▼ -0.22 (-2.32%)
HBL 90.44 Decreased By ▼ -0.06 (-0.07%)
HUBC 88.33 Increased By ▲ 0.63 (0.72%)
HUMNL 5.50 Increased By ▲ 0.01 (0.18%)
KEL 1.96 Decreased By ▼ -0.05 (-2.49%)
LOTCHEM 28.49 Decreased By ▼ -0.01 (-0.04%)
MLCF 29.94 Decreased By ▼ -0.26 (-0.86%)
OGDC 96.46 Decreased By ▼ -1.74 (-1.77%)
PAEL 9.94 Decreased By ▼ -0.05 (-0.5%)
PIBTL 3.86 Decreased By ▼ -0.03 (-0.77%)
PIOC 85.10 Decreased By ▼ -0.15 (-0.18%)
PPL 74.07 Decreased By ▼ -0.53 (-0.71%)
PRL 15.22 Decreased By ▼ -0.10 (-0.65%)
SILK 0.95 Decreased By ▼ -0.02 (-2.06%)
SNGP 46.98 Increased By ▲ 0.18 (0.38%)
SSGC 9.19 Decreased By ▼ -0.17 (-1.82%)
TELE 6.70 Decreased By ▼ -0.26 (-3.74%)
TPLP 12.24 Decreased By ▼ -0.09 (-0.73%)
TRG 88.02 Decreased By ▼ -2.13 (-2.36%)
UNITY 25.17 Decreased By ▼ -0.22 (-0.87%)
WTL 1.14 No Change ▼ 0.00 (0%)
BR100 4,626 Decreased By -30.1 (-0.65%)
BR30 16,569 Decreased By -93.8 (-0.56%)
KSE100 46,233 Decreased By -132.5 (-0.29%)
KSE30 15,989 Decreased By -183.2 (-1.13%)

SINGAPORE: Asian spot prices of liquefied natural gas (LNG) declined this week, falling to a 21-month low, as weak demand in the northeast Asia region continues to pressure prices down.

The average LNG price for May delivery into northeast Asia was $13 per million British thermal units (mmBtu), down 50 cents, or 3.7%, from the previous week, industry sources estimated.

Prices have fallen 53% year-to-date and around 81% from the August 2022 peak at $70.50/mmBtu.

“Demand from northeast Asian buyers still remains broadly weak, with few end-users needing to step into the spot market for additional prompt supply,” said Samuel Good, head of LNG pricing at commodity pricing agency Argus.

He added that traders, however, are looking at the potential for any third-quarter demand that could emanate from China, where demand is expected to pick up on rising economic activity following the lifting of strict COVID lockdowns in December.

Global LNG: Asian spot prices stay flat at 20-month low, held by buying interest

In Europe, gas prices rose on Friday due to firm demand and as industrial action protesting against pension system changes in France affected operations at nuclear plants and LNG terminals.

European gas prices had also been supported by mildly colder weather and less wind.

“A conflicted market to end the week, Europe showing some upside potential which would ordinarily pull Asia up with it. However, recent prompt tender rates have been lower than expected for delivered terms, coupled with a lack of any real demand for North Asia,” said Toby Copson, global head of trading at Trident LNG.

“I’d have to say short-term bearish outlook on Asian pricing until some demand driver emerges.”

The market has also continued to eye the potential for production issues across several Atlantic basin liquefaction terminals, added Argus’s Good, including at Freeport LNG in the United States and Angola LNG.

Angola’s only LNG project had recently cancelled tenders due to production issues at its plant, according to trading sources this week, while a company spokesperson said the plant is currently operating at reduced rates.

Meanwhile, the second biggest U.S. LNG export plant, Freeport, had cancelled up to four shipments of LNG due to restart snags after an eight-month-long outage, trading sources told Reuters.

S&P Global Commodity Insights assessed its daily north-west Europe LNG Marker (NWM) price benchmark for cargoes delivered in May on ex-ship (DES) basis at $12.334/mmBtu on March 24, a discount of $1.475/mmBtu to the May gas price at the Dutch gas TTF hub, said Allen Reed, managing editor, Atlantic LNG.

“The price of delivered LNG into Northwest Europe hit a 21-month low of $11.226 on March 20 as winter ended alongside strong natural gas inventories,” said Reed. “The price has remained depressed alongside the extension of strikes at French LNG terminals.”

Argus’ assessment for Northwest Europe DES LNG price was at $12.70/mmBtu on March 23.

On LNG spot freight, rates declined $6,250/day in both the Atlantic and Pacific basins since last Friday, said Eleni Balomenou, analyst at Spark Commodities. Atlantic rates fell below $50,000/day, the lowest since August 2022, while Pacific rates also declined to $71,500/day.

Comments

Comments are closed.

Global LNG: Asia spot prices slip as weak northern demand remains

Meeting with Dr Shamshad: Banks, DFIs agree to set up private equity, venture funds

Moscow Format Consultations: Afghan govt asked to eliminate terrorist groups

Turkiye says 'terrorists' carried out bomb attack near government building

Income Tax return filing deadline extended to Oct 31

President dismisses FBR’s appeal against expats

Afghan embassy in India suspends operations

Five new cargo vessels heading for Ukrainian Black Sea ports

Rs63bn more than the target: Q1 tax collection stands at Rs2.041trn

Elections on Oct 21-22: PTBA issues provisional list of candidates

Q1 SRB collection up 44pc to Rs52.12bn YoY