OIL & GAS

LNG-Asia LNG prices at over 6-month high on Gorgon concerns, cargo buying

Asian spot liquefied natural gas (LNG) prices rose to more than a six-month high this week on concerns over production from Australia’s Gorgon plant and demand from some buyers in the region.

The average LNG price for September delivery into northeast Asia LNG-AS was estimated between $3.60 and $3.80 per million British thermal units (mmBtu), $0.60 per mmBtu above last week’s level. The price for October delivery was seen between $3.80 and $4.00 per mmBtu.

This is for the first time since end-January when prices increased to levels close to $4.00 per mmBtu, Reuters data showed.

Gorgon Train 2 has been shut for maintenance since May, with its restart date delayed to September from July. Two other trains were also ordered to be inspected after safety concerns were raised.

Offtakers from the plant have likely bought several cargoes to replace Gorgon volumes in the past two weeks, traders said.

Some buyers in Japan, China and India have also been buying cargoes, but said overall demand was still subdued, they added.

Source
Reuters
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