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Reuters reports steady Asian LNG spot prices

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LNG Industry,


According to Reuters, Asian spot prices for LNG have remained at a steady level this week, amid hot weather in Japan leading to purchasing activity, while a new US project is expected to load its first cargo soon.

Reuters reports that spot prices for October delivery to Northeast Asia LNG-AS are estimated to be approximately US$4.70 – US$4.90 per million Btu. This is a slight increase compared to last week, which saw spot prices of US$4.75/million Btu.

According to Reuters, prices for September delivery are estimated to be around US$4.20/million Btu, which is the same as the previous week.

Industry sources reportedly said that Tohoku Electric Power – a Japanese utility – sought a cargo for delivery next month, in a tender that closes today. According to the sources, this is the utility’s second spot requirement this month alone.

One trader based in Singapore reportedly said: “(Japanese utilities) should be drawing down inventory given that it has been so hot.”

Reuters also reports that Malaysian company Petronas also successfully sold a spot cargo below US$5/million Btu. Details on the purchaser have not been disclosed.

In addition to this, Reuters reports that this week has also seen Gujarat State Petroleum Corp. (GSPC) and Indian Oil Corp. both seek cargoes for delivery over the August – October period.

Industry sources have also said that Kuwait Foreign Petroleum Exploration Co. (KUFPEC) has offered a Wheatstone cargo for loading next month, while the Angola LNG project and Sakhalin 2 also offered cargoes for September.

According to Reuters, it is expected that Freeport LNG will also soon load its first LNG cargo from its export facility in Texas, US.

The news agency claims that the LNG Jurojin and Sohshu Maru LNG carriers are currently travelling to the plant and are likely to take on board commissioning cargoes (according to industry sources and shiptracking data from Eikon).

Reuters reports that traders are expecting that the price spread between September and October will narrow given the roll-over in the pricing assessment month, and that is likely to limit floating storage options.

Read the article online at: https://www.lngindustry.com/lng-shipping/16082019/reuters-reports-steady-asian-lng-spot-prices/

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