Asian LNG prices rise helped by South Korean winter demand
Asia liquefied natural gas (LNG) prices rose this week amid heating demand from South Korea during winter and from India and China for the longer term.
The average LNG price for January delivery into Northeast Asia LNG-AS rose to $35.80 per metric million British thermal units (mmBtu), up $1.20 from the previous week, industry sources said.
Prices for cargoes delivered in February are estimated to be about $34.80 per mmBtu, they added.
South Korea’s GS Energy is seeking a cargo for delivery in January while Korea Gas Corp (KOGAS) bought 4 to 6 LNG cargoes for delivery for January to February, the sources said.
Turkish state energy company Botas is also seeking five cargoes for delivery for January and February.
For next year, Chinese offshore oil and gas major CNOOC is seeking 10 cargoes for delivery for March to December.
India’s H-Energy, a natural gas company, is seeking eight liquefied natural gas (LNG) cargoes a year for delivery over four years starting from April, 2022, two industry sources said on Thursday.
Still, many companies have already procured spot cargoes for winter and are unlikely to need further volumes unless there is a sudden cold snap, one gas buyer said.
“The current price levels are not acceptable at all, so many have halted procurement for now,” the source added.
Supply was seen from Russia and Egypt which capped price gains.
Russia’s Novatek has offered three cargoes for delivery to Europe over January to March, while Egypt’s EGAS offered a cargo for loading in December, sources said.
Abu Dhabi National Oil Co (ADNOC) has also offered nine cargoes for delivery over the next two years.
Freight rates to ship LNG have also slipped this week, which helped support cargo prices.