banner
Home » News » Content
Product Categories

Global LNG Prices Rise To The Highest Level Since February

- Jun 07, 2018 -

Asian spot LNG prices have climbed to the highest level since February this week as China’s buying interest remains strong and maintenance was insufficient during August.


This week, Asian spot delivery in July rose 40 cents from last week to $9.60/mmBTU, the highest level of this time since 2014.


Two trade sources said that the high oil prices in recent weeks have weighed on some buyers' interest in buying goods in the spot market, but some of them may now need to meet their needs immediately.


One source in Singapore stated that "some traders are in a bad situation in July."


However, some companies sold their cargoes through private negotiations. In August, the LNG supply was expected to be low due to the overhaul of the Russian Sakhalin Energy Company’s offshore gas platform and the Angolan LNG project.


Indian buyers are reluctant to purchase cash at higher prices, and they may switch to coal.


A trader said that China’s demand is still strong, and some people are willing to pay $9.70-9.80/mmBTU to buy, but the details of the buyer’s purchase, if any, are still unclear.


South Korea is also expected to increase procurement to meet summer demand. However, some off-the-shelf supplies from Russia may inhibit prices


The Novatek spot market in Russia sells a cargo ship, the transaction price is higher than the JKM price.


Argentina's Ennara Company sought to ship 8 ships in August and September. The tender was closed on June 12 and the Angola LNG Company sold a ship that was loaded in mid-June.


Japan’s Inpex Corp said this week that it will restart production within 1-2 weeks after the final safety inspection of the Ichthys LNG project in Australia. The company said that the first batch of liquefied petroleum gas (LPG), condensate oil, an ultra-light crude oil, and LNG will begin exporting at the end of September.