Asia spot LNG prices down on muted demand, cooler weather
By Marwa Rashad
LONDON, Sept 6 (Reuters) -Asian spot liquefied natural gas (LNG) prices fell this week on signals of weak economic growth in China while above-average temperatures across China, Japan and South Korea are coming to an end, which would reduce cooling demand.
The average LNG price for October delivery into north-east Asia LNG-AS was at $13.40 per million British thermal units (mmBtu), industry sources estimated, down from $14.00/mmBtu last week.
"Poor industrial data from China put red flags on the industrial gas demand for the coming period, signalling weaker economic growth," said Klaas Dozeman, market analyst at Brainchild Commodity Intelligence.
"In addition, the warmest weather seems to come to an end in the coming weeks as temperatures start to sink on seasonal effects. This might decrease the cooling demand over the coming period," he said.
Dozeman said that while geopolitical tensions are still ongoing in gas sensitive markets, the risks did not materialize any disruptions so far.
In Japan, Major power utilities reported combined LNG storage levels of 1.83 million tonnes (Mt) for Sept. 1, down 11.2% week-on-week but 6.4% higher than at the end of August 2023. However, levels are 9.4% lower than the five-year average of 2.02 Mt for the end of August from 2019-23, said Masanori Odaka, senior analyst at Rystad Energy.
"Japan could import additional spot LNG for 4Q 2024 delivery, but the volume depends on the duration of its current heatwave and the intensity of the upcoming winter," Odaka said.
In Europe, gas prices at the Dutch TTF hub shed much of the previous week's gains as forecasts of stronger renewables output in key European countries — especially Germany — together with adjustments to Norway's heavy late summer maintenance schedules helped to weigh on prices, said Samuel Good, head of LNG pricing at commodity pricing agency Argus.
"European gas price movements mostly occurred on the October contracts, with November prices falling less, with continued uncertainty surrounding October and the need for Europe to tread the fine line between maximised underground gas stocks heading into winter and the necessary system flexibility to deal with day-to-day demand and supply differences," Good said.
S&P Global Commodity Insights assessed its daily North West Europe LNG Marker (NWM) price benchmark for cargoes delivered in October on an ex-ship (DES) basis at $11.534/mmBtu on Sept. 5, a $0.20/mmBtu discount to the October gas price at the Dutch TTF hub.
Spark Commodities assessed the price at $11.607/mmBtu, while Argus assessed it at $11.550/mmBtu.
"Muted demand both in the Atlantic and Pacific basins, coupled with ample European gas storage levels, have offset previous supply side concerns during the summer maintenance period of the Norwegian Continental Shelf facilities," said Karim El Afany, managing editor of Atlantic LNG at S&P Global Commodity Insights.
Atlantic and Pacific LNG freight rates were down for the fourth week running, with the Atlantic rates falling to $59,250/day on Friday, and the Pacific rates down to $74,000/day, said Spark Commodities analyst Qasim Afghan.
Reporting by Marwa Rashad; Editing by David Evans
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.
