Sunday, February 5, 2023
spot_img
HomeGasAsian LNG prices slide amid stable European gas flows

Subscribe

To our FREE newsletter
Get all the latest maritime news delivered straight to your inbox.

Asian LNG prices slide amid stable European gas flows

Asian spot liquefied natural gas (LNG) prices declined this week, tracking European gas prices which fell due to stable Russian gas flows and LNG supply.

However, market players remain concerned over the risk of Russian supply disruption amid a tense geopolitical situation following Moscow’s invasion of Ukraine, which remains a bullish factor that could send prices higher.

The average LNG price for April delivery into north-east Asia LNG-AS was estimated at $38.00 per metric million British thermal units (mmBtu), down $2.50, or 6.2% from the previous week, industry sources said.

“It’s all still very politically driven with regards to the Eastern situation and THE risk of (Russian gas) cut-off remains. In the meantime, supplies from Russia are healthy, LNG (flow to Europe) is increasing and the outlook on fundamentals is bearish,” a European trader said.

Another factor which would support a price rise would be Europe’s attempts to fill its gas storage during the summer gas season which runs from April through October.

“Europe’s attempt to fill out 90% of its gas storage by October is likely to be a challenging endeavor as that would likely slow LNG demand growth in Asia, suggesting elevated prices for months on end,” said Kaushal Ramesh, senior LNG analyst at Rystad Energy.

Price agency S&P Global Commodity Insights’ Japan-Korea-Marker (JKM), which is widely used as a spot benchmark in the region, jumped to a record $84.762/mmBtu on Monday on as buyers scour global markets for LNG cargoes to replace Russian gas and LNG, but declined later into the week.

Industry and government sources said White House efforts to boost U.S. liquefied natural gas exports and cut Europe’s reliance on Russian gas are proceeding slowly, because of concerns about the impact on climate change.

The European commission earlier this week revealed a plan to wean its economies off Russian gas, focusing on replacing Russian gas with alternative supplies of 60 billion cubic metres (bcm), most of which would come from LNG imports.

“The plans strongly lean on the rise of LNG imports, however there won’t be enough LNG available to fill the gap even in the very unlikely scenario that all available LNG were to be shipped towards Europe,” said Hans van Cleef, senior energy economist at ABN Amro.

While inventories are running low in Japan and South Korea and would encourage restocking demand, buyers remain reluctant to engage in the spot market and prefer to wait until prices are at more reasonable levels.

Atlantic basin charter rates surged to $42,000/day on Friday on the back of increased demand to secure tonnage, according to Henry Bennett at Spark Commodities.

Source: Reuters

Related Posts

Video

Finance & Economy
Shipping News
Ports

Keppel Corp posts 9% drop in full-year profit

Singapore’s Keppel Corp said on Thursday its net profit for the year fell 9%, partly hurt by weak performance from its urban development business...

Stolt-Nielsen sees Q4 profits rise on strong markets

Stolt-Nielsen Limited reported unaudited results for the fourth quarter and full year 2022. The Company reported a fourth-quarter net profit of $95.3 million, with revenue...

Euronav delivers better-than-expected Q4 revenue

Euronav NV reported its non-audited financial results for the fourth quarter ended 31 December 2022. Hugo De Stoop, CEO of Euronav said: “Constrained vessel supply...

Wartsila: A challenging year with strong annual growth

HIGHLIGHTS FROM OCTOBER–DECEMBER 2022 Order intake decreased by 24% to EUR 1,638 million (2,150)Service order intake increased by 6% to EUR 791 million (747)Net sales...

Hapag-Lloyd achieves extraordinarily strong result in its anniversary year 2022

On the basis of preliminary and unaudited figures, Hapag-Lloyd has concluded the 2022 financial year – in which it celebrated its 175th anniversary –...

Baltic index hits over 2-year trough on waning demand for larger vessels

The Baltic Exchange’s dry bulk sea freight index dropped to its lowest level in...

Luxury Cruise Market Holds Much Promise For Greek & East Med Hidden Gem Destinations

The appeal of Greece and the East Mediterranean as an ideal region for luxury...

Baltic index falls to over 2-year low as larger vessel rates slide

The Baltic Exchange’s dry bulk sea freight index fell to its lowest since June...

Baltic index logs worst month in 3 years

The Baltic Exchange’s main sea freight index registered its biggest monthly percentage fall in...

Baltic index snaps 9-day losing streak as panamax, supramax rates rise

The Baltic Exchange’s main sea freight index snapped its nine-session losing streak on Tuesday,...

DP World wins bid for development of a mega-container terminal at India’s Deendayal Port

DP World has won a major concession to develop, operate and maintain the mega-container terminal at Deendayal port in Gujarat, on the western coast...

Luxury Cruise Market Holds Much Promise For Greek & East Med Hidden Gem Destinations

The appeal of Greece and the East Mediterranean as an ideal region for luxury cruising will be one of the main highlights of the...

Port of Los Angeles proposes cruise terminal project

The Port of Los Angeles is inviting comments on a draft Request for Proposals (RFP) for the future development of a new Outer Harbor...

Port of Long Beach Closes 2022 with Second-Busiest Year

The Port of Long Beach marked its second-busiest year on record by moving 9.13 million twenty-foot equivalent units in 2022, allowing for a return...

Hapag-Lloyd AG acquires share in J M Baxi Ports & Logistics Limited

Hapag-Lloyd AG signed a binding agreement today under which it will acquire 35% of J M Baxi Ports & Logistics Limited (JMBPL) from a...