Summer demand boosts Asian LNG spot prices

China Petrochemical News Network reported on May 28, according to a natural gas processing website.

According to industry insiders, the average price of LNG delivered to Northeast Asia in July is estimated to be about 10.

Weather data from Refinitiv Eikon shows that in the next two weeks, temperatures in Beijing, Tokyo, Seoul and Shanghai are expected to be above average, which may increase the demand for cooling natural gas.

Consulting firm Wood Mackenzie said that the seasonal highs of LNG spot prices occurred in the northern hemisphere in winter and summer when heating and air-conditioning demand was strong, and that the demand should still be pressured throughout the year.

Robert Sims, director of short-term, natural gas and LNG research at Wood Mackenzie LNG, said in a report: "The winter market dynamics will become increasingly tense.

Since the U.

According to traders, Trafigura sold a batch of goods to Victor from July 17 to July 21.

However, a trader said that buyers are reluctant to pay for goods that are much higher than the price of US$10 per million British thermal units.

A trader said that Petronas sold two shipments to North Asia from July 7 to July 8 and July 23 to 24, at a price slightly higher than US$10 per million British thermal units.

An industry insider said that Japan’s Shizuoka Natural Gas Company purchased a batch of cargo from the Papua New Guinea LNG plant for shipment in late September at a price of approximately US$10.

Wu Henglei compiled from natural gas processing

The original text is as follows:

LNG Asian spot prices rise on summer demand

Asian spot prices for LNG are on the rise, as buyers stocked up the power-generating fuel on anticipation that a warmer-than-usual summer will spur demand for air-conditioning units.

The average LNG price for July delivery into Northeast Asia was estimated at about $10.

Temperatures in Beijing, Tokyo, Seoul, and Shanghai are expected to be higher than average over the next two weeks, weather data from Refinitiv Eikon showed, which could increase gas demand for cooling.

Spot LNG prices seasonably peak in the northern hemisphere winter and summer periods of high demand for heating and air-conditioning, respectively, and should remain under pressure throughout the year on high demand, consultancy Wood Mackenzie said.

"Winter will see market dynamics getting increasingly tighter," Robert Sims, head of LNG Short-Term, Gas and LNG Research at Wood Mackenzie, said in a note.

    Supply coming from the United States, which hit historical levels last month, decreased this week with export plants entering seasonal maintenance, adding to a strained market.

    Trafigura sold a cargo to Vitol for delivery between July 17 and July 21, with a premium of $1.
45 per mmBtu over European LNG prices, according to traders.
Premiums over $1 per mmBtu tend to compensate for the longer trip costs to Asia, attracting ships to head East.

    Buyers, nevertheless, were resistant to pay for cargoes offered well above the $10 per mmBtu range, a trader said.

    Petronas sold two cargoes for delivery between July 7 and 8, and July 23-24 to North Asia for slightly more than $10 per mmBtu, a trader said.

    Japan's Shizuoka Gas bought a cargo for second-half September loading from Papua New Guinea LNG plant at around $10.
30 per mmBtu, an industry source said.