BAFL 38.50 Decreased By ▼ -0.11 (-0.28%)
BIPL 17.26 Increased By ▲ 0.47 (2.8%)
BOP 4.06 Increased By ▲ 0.11 (2.78%)
CNERGY 3.08 Decreased By ▼ -0.03 (-0.96%)
DFML 16.50 Increased By ▲ 0.25 (1.54%)
DGKC 43.90 Increased By ▲ 0.15 (0.34%)
FABL 22.30 Increased By ▲ 0.15 (0.68%)
FCCL 11.34 Increased By ▲ 0.39 (3.56%)
FFL 6.37 Increased By ▲ 0.07 (1.11%)
GGL 9.49 Decreased By ▼ -0.09 (-0.94%)
HBL 90.55 Decreased By ▼ -1.95 (-2.11%)
HUBC 87.60 Decreased By ▼ -0.10 (-0.11%)
HUMNL 5.48 Decreased By ▼ -0.02 (-0.36%)
KEL 1.99 Increased By ▲ 0.04 (2.05%)
LOTCHEM 28.54 Increased By ▲ 0.28 (0.99%)
MLCF 30.11 Increased By ▲ 0.65 (2.21%)
OGDC 97.65 Increased By ▲ 1.58 (1.64%)
PAEL 9.96 Decreased By ▼ -0.09 (-0.9%)
PIBTL 3.93 Increased By ▲ 0.03 (0.77%)
PIOC 85.43 Increased By ▲ 0.68 (0.8%)
PPL 74.30 Increased By ▲ 1.40 (1.92%)
PRL 15.35 Decreased By ▼ -0.05 (-0.32%)
SILK 0.97 Increased By ▲ 0.03 (3.19%)
SNGP 46.71 Increased By ▲ 0.28 (0.6%)
SSGC 9.36 Increased By ▲ 0.23 (2.52%)
TELE 6.95 Increased By ▲ 0.03 (0.43%)
TPLP 12.34 Increased By ▲ 0.02 (0.16%)
TRG 90.12 Increased By ▲ 1.08 (1.21%)
UNITY 25.31 Decreased By ▼ -0.18 (-0.71%)
WTL 1.14 Decreased By ▼ -0.02 (-1.72%)
BR100 4,653 Increased By 9.1 (0.2%)
BR30 16,640 Increased By 94.5 (0.57%)
KSE100 46,348 Increased By 70.7 (0.15%)
KSE30 16,169 Increased By 17.3 (0.11%)

SINGAPORE: Asian spot liquefied natural gas (LNG) remained flat this week at a two-year low, as ample spot supplies and limited buying activity kept prices steady in a range.

The average LNG price for July delivery into north-east Asia was at $9 per million British thermal units (mmBtu), the lowest since May 2021, industry sources estimated.

While the low prices and summer restocking activity have prompted some buying by users in Asia and Europe, Asia spot LNG prices are still hovering at current levels as “fundamentals are stable”, said Hengky, senior LNG analyst at Refinitiv.

“(There are) ample prompt supplies, healthy storage levels in Europe. Weak downstream demand in some Asian markets is also limiting spot buying. Coal is still more economical than LNG.”

Key LNG importer China, for example, is not expected to increase spot cargo uptake despite an ongoing heatwave boosting power demand, as tepid industrial demand and high coal inventories limit imports.

While Asian prices have been rangebound most of the week, buying activity by tier-two Chinese importers have kept rates from falling, said Toby Copson, global head of trading at Trident LNG, referring to non-state owned Chinese importers.

Global LNG: Asian spot LNG prices slip for sixth straight week

“South Asia and India is where the demand is right now and Asia is holding the premium over Europe. Weather remains the catalyst with heatwaves pushing cooling demand and utilities seeking coverage.”

While there has been several LNG carriers leaving U.S. terminals this week for Asia instead of Europe, some northeast Asian demand that emerged in recent weeks is price-sensitive and may not hold if Europe competes for spot Atlantic supply, said Samuel Good, head of LNG pricing at commodity pricing agency Argus.

“This is particularly the case in China, for which traders are expecting ample coal and hydroelectric stocks ahead of the peak summer power demand period in the third quarter.”

In Europe, S&P Global Commodity Insights assessed its daily north-west Europe LNG Marker (NWM) price benchmark for cargoes delivered in July on an ex-ship (DES) basis at $8.090/mmBtu on June 8, a $0.45/mmBtu discount to the July gas price at the Dutch gas TTF hub, according to Allen Reed, managing editor of Atlantic LNG.

“The market has remained near multi-year lows alongside weakness in the Asia market. Both have seen strong supply met by tepid buying demand with one European-based trader joking they are in competition to see which can be the weakest,” he said.

Argus assessed the NWE DES price at $8.05/mmBtu on June 8.

Europe’s gas prices mostly rose on Friday as Norwegian gas field outages were extended and lower wind output is forecast for the coming week.

Norway’s Equinor also postponed the restart of production at its Arctic LNG plant in Hammerfest by one week to June 14.

Meanwhile, spot LNG freight rates gained this week, with Atlantic spot rates rising to $50,500/day on Friday, their highest levels since March, said Edward Armitage, analyst at Spark Commodities.

“This comes amid an open arbitrage to Asia, with netback forward curves pricing in U.S. cargoes more profitable to Asia than northwest Europe for the remainder of the summer,” he said, adding that Pacific rates also rose to $50,500/day.


1000 characters

Global LNG: Asian spot prices flat on limited demand, ample spot supplies

Intra-day update: rupee’s winning run against US dollar continues

Open-market: rupee appreciates further against US dollar

Pakistan seeks Chinese assistance in EV technology

Pakistan seeks two LNG cargoes for winter

At least 8 dead, 5 injured in rocket launcher shell explosion in Sindh’s Kandhkot

India would look into any ‘specific’ info on Sikh separatist killing in Canada

Oil prices climb as markets focus on supply tightness

EPCL extends gas supply deal with SSGC till October 15

After IB, Pemra also withdraws review petition against Faizabad sit-in case verdict

Raast platform: SBP set to launch ‘P2M’ payment system