Home / Energy/ Asian LNG prices hit highest in over two months high on tight supply

Asian LNG prices hit highest in over two months high on tight supply


Comments / {{hitsCtrl.values.hits}} Views / Thursday, 30 August 2018 00:00


Singapore (Reuters): Asian spot Liquefied Natural Gas (LNG) prices rose for the second straight week to their highest in over two months, buoyed by stable demand ahead of winter and as some producers curbed supply due to maintenance or disruption at plants.

Spot prices for October delivery in Asia rose to $11.40 per million British thermal units (mmBtu) last week, up 30 cents from the week before, industry sources said. Prices for November delivery are pegged at about $12.15 per mmBtu, widening the inter-month spread, they added.

Planned maintenance at Australia’s Wheatstone LNG plant and a disruption at the Sakhalin-2 LNG project in the Far East of Russia are expected to tighten supply in the coming week, traders said.

Sakhalin Energy halted a production line at Sakhalin-2 on Saturday, but expects output to be restored in the coming days.

While the issue is not expected to have any serious impact on exports as some supply can be replaced with volumes in storage, the loading of some cargoes could be delayed, said a source close to the matter.

Demand from new buyers is also supporting LNG prices in the region.

State-run Electricity Generating Authority of Thailand (EGAT) is looking to directly import LNG for the first time, as part of a government plan to boost competition in the power sector, while Bangladesh has started operations at the country’s first LNG terminal.

Elsewhere, Japanese importers are continuing to buy in the spot market, though purchases have slowed from previous weeks when scorching weather had bolstered imports, a second trader said.

Japan’s Kyushu Electric Power Co may have purchased a spot cargo for August or September at $11.20 to $11.30 per mmBtu, traders said, though this could not immediately be confirmed.

“It seems that Japanese buyers have almost completed their procurement until October,” said a Japan-based industry source.

“Although the heat came back again for a few days, because the summer is almost over, I think Japanese buyers will be not so active for a while.”

All sources declined to be identified as they were not authorised to speak with media. Energy companies do not typically comment on commercial deals.


Share This Article


DISCLAIMER:

1. All comments will be moderated by the Daily FT Web Editor.

2. Comments that are abusive, obscene, incendiary, defamatory or irrelevant will not be published.

3. We may remove hyperlinks within comments.

4. Kindly use a genuine email ID and provide your name.

5. Spamming the comments section under different user names may result in being blacklisted.

COMMENTS

Today's Columnists

In the desert of Tamil films, actor Sivaji Ganesan was an oasis

Saturday, 22 September 2018

‘Indian Film,’ first published in 1963 and co-authored by former Columbia University Professor Erik Barnouw and his student Dr. Subrahmanyam Krishnaswamy, is considered a seminal study of the evolution and growth of Indian cinema. The book is cit


Imran may turn blind eye to blasphemy law and persecution of Ahmadiyyas

Saturday, 22 September 2018

There are clear signs that Pakistan’s freshly minted Prime Minister, Imran Khan, will make a sincere effort to reduce corruption and maladministration in the domestic sphere. In foreign affairs he is likely to make a brave attempt to mend fences wi


The rate of exchange, capital flight and the Central Bank

Friday, 21 September 2018

The Central Bank (CBSL) exists for the sole purpose of price stability. Its controls on the financial system and monetary policy exist to maintain price stability. As put forth many times by the Governor, the failing of the CBSL to control inflation


Red flag over the Sri Lankan Navy

Friday, 21 September 2018

Shocking story Rusiripala, a former banker in Sri Lanka, who has taken to writing in Daily FT, is perturbed by the red flag I have raised (Daily FT article 18 September) over the shocking charge that our Navy had operated a ransom gang that had abduc


Columnists More