Reuters are reporting that Asian spot LNG prices jumped this week, boosted by hopes Korea Gas Corporation's new tender would match past buying sprees and by emerging demand from China and Japan.
Spot prices for June delivery rose to US$5.70 per mmBtu, a 20 cent increase over last week.
Korea Gas Corporation's 20 April tender for June and July supply – set to close on April 26 – immediately stirred up bullish offers, rescuing an otherwise muted trading week.
The last time Kogas entered the market to buy two cargoes in December 2016, it ended up awarding up to 11.
That was only one of a number of factors contributing to LNG snapping a 15-week losing streak, with Japan's Tohoku Electric seeking a May/June cargo alongside trading giant JERA's limited spot needs, Portugal's EDP seeking a June/July cargo, plus demand from Spain, India and China.
Demand, even in top-tier buyer Japan, is lacklustre and weather forecasts do not support a dramatic shift any time soon. Nigeria and Russia, meanwhile, have both approached the market with new supply.
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/24042017/south-korean-tender-stirs-up-market/