Asian LNG prices rise on firm demand

Asian spot LNG prices rose this week on firm demand in the region, as well as supply concerns in the United States due to a hurricane and stronger European gas prices.

The average LNG price for November delivery into northeast Asia was estimated at $5.50 per million British thermal units (mmBtu), $0.30 mmBtu above last week's level.

The price for December 2020 delivery was at around $5.70 per mmBtu, trade sources said.

Demand for LNG is expected to be high in both Asia and Europe in the fourth quarter.

"We are expecting a substantial year-on-year increase in Northeast Asia's Q4 2020 demand for LNG because of increased heating load compared to last winter," consultancy Energy Aspects said in a report, adding that lower nuclear output in South Korea may also create additional LNG demand.

In India, demand is back to usual levels after a fall caused by the COVID-19 pandemic earlier this year, a source in the country said.

Pakistan has awarded two November cargoes to trader Gunvor , who offered the lowest bids at 14.2277% slope of Brent for the first cargo and 13.8377% for the second.

It has also invited bids for six December delivery cargoes.

Japan's Tohoku Electric Power was seeking a cargo for delivery in late November, while Mexican state power utility CFE was looking to buy a cargo for October.

U.S. producer Cameron LNG said on Thursday it would shut its export plant in Louisiana as Hurricane Delta was expected to slam into southwest Louisiana on Friday.

Russia's Novatek offered seven cargoes for delivery to Europe over December 2020 to June 2021.

An ongoing workers' strike in Norway on oil and gas fields has helped lifting European gas prices this week to the highest levels since December.

(Reporting by Ekaterina Kravtsova; editing by Nina Chestney)