Asian spot liquefied natural gas (LNG) prices jumped to a more than four-month high this week, tracking firmer gas prices in Europe and the United States, and as major cities in North Asia face warmer-than-usual weather potentially boosting demand.
The average LNG price for September delivery into northeast Asia LNG-AS was estimated at about $3.10 per million British thermal units (mmBtu) this week, up 40 cents from the previous week. Prices for cargoes to be delivered in October were estimated at about $3.50 per mmBtu.
“Market is bullish due to supply issues from Gorgon and also because European and U.S. gas markets are firm,” said a Singapore-based LNG trader, referring to the delayed restart of a production line at the Chevron-operated LNG plant in Australia.
The maintenance on Train 2 of the Gorgon project began in late May, but a restart initially planned for mid-July has been delayed until early September.
The recent rise in spot prices has seen buyers snap up cargoes at prices that are still low compared with previous years, the trader said.