OIL & GAS

LNG-Asian LNG prices rise amid lockdown easing, U.S. cancellations

Asian spot prices for liquefied natural gas (LNG) rose this week amid easing of lockdown measures in some countries and expectations of reduced exports from the United States this month.

The average LNG price for July delivery into northeast Asia LNG-AS was estimated at $2.10 per million British thermal units (mmBtu) on Friday, $0.25 above last week’s assessment.

There are signs that Indian LNG demand is picking up as the government eases lockdown measures, while Chinese demand is expected to maintain year-on-year growth, consultancy Energy Aspects said in a report this week.

“But there is ample uncertainty over the trajectory of a COVID-19 recovery, including the risk of a second wave of infections that could dent gas demand again,” the report said.

Market sources said thhe cancellation of at least 20 cargoes for loading from the United States in June was also filtering through, supporting the price.

In India, Indian Oil Corp and Gujarat State Petroleum Corp (GSPC) have bought cargoes in the past week, market sources said.

Source
Reuters
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