Asian spot LNG price may have seen winter peak amid steady demand, says Clyde Russell

The price of spot liquefied natural gas (LNG) in Asia may have already peaked for the winter demand season, with major buyers likely to have already purchased sufficient cargoes to meet their needs.

While there is always the risk of an interruption to supply from unexpected plant stoppages, the market is indicating that the demand pull is likely over and supply remains plentiful.

The weekly spot price for Asia dropped to $6.40 per million British thermal units (mmBtu) in the seven days to Nov. 20, meaning it has slipped 14.7% since its high so far this year of $7.50 in the week to Oct. 30.

It’s worth noting that the decline from $6.85 per mmBtu came as the assessment switched from cargoes for December delivery to those for January arrival.

However, in a sign that the spot price can be swung by events, LNG futures in New York, which mirror the S&P Global Platts benchmark spot price for north Asia, ticked higher on Monday amid reports of supply outages.

LNG futures ended at $6.55 per mmBtu on Monday, up 2.7% from the prior close.

The increase came as Qatar, the world’s second-largest LNG exporter, was reported to have shut one of its production trains after a fault.

ET energy World
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