LNG-Asian spot prices rise as summer demand heats up
Spot prices for LNG in Asia rose this week as high temperatures drove up demand for the fuel used in power generation, industry sources said.
The average LNG price for September delivery into Northeast Asia was estimated at around $13.30 per million British thermal units (mmBtu), traders said. That's 55 cents higher than the previous week, they added.
Temperatures in Tokyo, Beijing, Shanghai and Seoul, some of the world's top LNG consuming countries, are expected to stay above the historical average over the next two weeks, weather data from Refinitiv Eikon showed.
Despite the increase in the weekly comparison, buyers in Asia curbed the LNG surge by rejecting higher prices.
JKM, the benchmark price for spot LNG in Northeast Asia assessed by S&P Global Platts, traded as high as $14.31/MMBtu this month, the highest seasonal level in more than seven years.
PetroChina, Vitol, Mercuria and BP PLC were seeking cargoes this week at a discount over JKM for delivery until the first half of September, traders said.
"We are waiting the market to cool off a bit," a trader said.
In Europe, gas storage inventories are below normal levels and carbon prices are elevated, underscoring the short term global demand for the less-polluting carbon fuel, industry sources said.
"Europe demand could help keeping LNG prices to grow going forward," a London-based trader said.
Europe recently proposed https://www.reuters.com/business/environment/eu-maps-proposed-share-out-emissions-targets-between-countries-2021-07-14 climate policy plans that include financial incentives to reduce emissions for heating buildings.
In Brazil — a growing LNG consumer market — the oil and gas regulator, ANP, authorized miner Vale SA to import LNG from the United States, according to the official gazette.
BP Gas Marketing Ltd, Sempra LNG and IEnova said this week that they have entered into a contract for the delivery and receipt of the companies' first carbon offset cargo.
- McDermott awarded Rovuma LNG Phase 1 FEED contract in Mozambique
- Wood leads industry project to accelerate CCUS with guidelines for CO2 specifications
- ExxonMobil selects Chart Industries’ IPSMR® liquefaction technology for Mozambique LNG project
- Gasum selects Wärtsilä for another bio-LNG project in Sweden
- Vaisala seeks to remove greenwashing from carbon capture with new measurement solution
Comments