Asia spot LNG prices above 7-month high on hot weather, Mideast tensions
By Marwa Rashad
LONDON, Aug 2 (Reuters) -Asian spot liquefied natural gas (LNG) prices rose this week to their highest level in over seven months as high temperatures in Japan and South Korea boosted power demand and amid heightened geopolitical risks due to tensions in the Middle East.
The average LNG price for September delivery into north-east Asia LNG-AS was at $12.80 per million British thermal units (mmBtu), industry sources estimated. This is the highest level since mid-December and up from $12.00/mmBtu last week.
"The spot LNG market has been bullish this week, with Europe and Asia both gaining almost $1/mmBtu from the end of last week," said Alex Froley, senior LNG analyst at data intelligence firm ICIS.
"High temperatures in Japan have boosted energy demand. Traders are also keeping an eye on tensions in the Middle East," he said.
Hot weather in Japan and South Korea is driving gas burn, drawing terminal LNG stocks lower. However, the consumption has yet to translate into substantial spot LNG demand, said Samuel Good, head of LNG pricing at commodity pricing agency Argus.
The killing of a Hamas leader in Iran has raised concerns that the 10-month war in Gaza between Israel and Hamas was turning into a wider Middle East war.
"Market participants have increased their risk premium based on the higher risk that supply disruptions may occur in the coming months if the tensions escalate further," said Hans Van Cleef, chief energy economist at PZ Energy.
The prospects of Iran getting more actively involved in a conflict remains unlikely but still poses a risk of a closure of the Strait of Hormuz, what would affect global LNG-markets significantly, Van Cleef added.
On the supply side, Russia's Sakhalin plant has ongoing maintenance and loaded only five cargoes in July, compared with normal output of around 15-16 cargoes, ICIS' Froley said.
Australia's Ichthys LNG, operated by Japan's Inpex Corp 1605.T, has resumed operations following an outage at one of its trains and is operating at 70-80% capacity, sources told Reuters.
In Europe, rising geopolitical risk, higher temperatures, upcoming Norwegian Continental Shelf maintenance in September, and the strengthening of Asian prices, saw north-west Europe LNG prices rally 11.5% over the week, said Karim El Afany, managing editor of Atlantic LNG at S&P Global Commodity Insights.
S&P Global Commodity Insights assessed its daily North West Europe LNG Marker (NWM) price benchmark for cargoes delivered in September on an ex-ship (DES) basis at $11.475/mmBtu on Aug. 1, a $0.17/mmBtu discount to the September gas price at the Dutch TTF hub.
Argus assessed the August delivery price at $11.50/mmBtu, while Spark Commodities assessed it at $11.613/mmBtu, saying this was the highest price since early December, and the narrowest discount to the TTF since August 2023.
Atlantic LNG freight rates fell for the fourth consecutive week to $73,700/day on Friday, while the Pacific rates rose for the sixth week running to $75,250/day, said Spark Commodities analyst Qasim Afghan.
Reporting by Marwa Rashad; additional reporting by Emily Chow; Editing by Nina Chestney
Pinakabagong Balita
Disclaimer: Ang mga kabilang sa XM Group ay nagbibigay lang ng serbisyo sa pagpapatupad at pag-access sa aming Online Trading Facility, kung saan pinapahintulutan nito ang pagtingin at/o paggamit sa nilalaman na makikita sa website o sa pamamagitan nito, at walang layuning palitan o palawigin ito, at hindi din ito papalitan o papalawigin. Ang naturang pag-access at paggamit ay palaging alinsunod sa: (i) Mga Tuntunin at Kundisyon; (ii) Mga Babala sa Risk; at (iii) Kabuuang Disclaimer. Kaya naman ang naturang nilalaman ay ituturing na pangkalahatang impormasyon lamang. Mangyaring isaalang-alang na ang mga nilalaman ng aming Online Trading Facility ay hindi paglikom, o alok, para magsagawa ng anumang transaksyon sa mga pinansyal na market. Ang pag-trade sa alinmang pinansyal na market ay nagtataglay ng mataas na lebel ng risk sa iyong kapital.
Lahat ng materyales na nakalathala sa aming Online Trading Facility ay nakalaan para sa layuning edukasyonal/pang-impormasyon lamang at hindi naglalaman – at hindi dapat ituring bilang naglalaman – ng payo at rekomendasyon na pangpinansyal, tungkol sa buwis sa pag-i-invest, o pang-trade, o tala ng aming presyo sa pag-trade, o alok para sa, o paglikom ng, transaksyon sa alinmang pinansyal na instrument o hindi ginustong pinansyal na promosyon.
Sa anumang nilalaman na galing sa ikatlong partido, pati na ang mga nilalaman na inihanda ng XM, ang mga naturang opinyon, balita, pananaliksik, pag-analisa, presyo, ibang impormasyon o link sa ibang mga site na makikita sa website na ito ay ibibigay tulad ng nandoon, bilang pangkalahatang komentaryo sa market at hindi ito nagtataglay ng payo sa pag-i-invest. Kung ang alinmang nilalaman nito ay itinuring bilang pananaliksik sa pag-i-invest, kailangan mong isaalang-alang at tanggapin na hindi ito inilaan at inihanda alinsunod sa mga legal na pangangailangan na idinisenyo para maisulong ang pagsasarili ng pananaliksik sa pag-i-invest, at dahil dito ituturing ito na komunikasyon sa marketing sa ilalim ng mga kaugnay na batas at regulasyon. Mangyaring siguruhin na nabasa at naintindihan mo ang aming Notipikasyon sa Hindi Independyenteng Pananaliksik sa Pag-i-invest at Babala sa Risk na may kinalaman sa impormasyong nakalagay sa itaas, na maa-access dito.
