Global LNG: Asian prices reverse declining trend on Japanese demand

November 9, 2018

By Jessica Jaganathan

SINGAPORE (Reuters) – Asian spot prices for liquefied natural gas (LNG) edged higher this week, reversing the declining trend of recent weeks due to renewed appetite for spot cargoes, but unsold cargoes capped gains, traders said.

Spot prices for December delivery into North Asia were estimated at $10.30 per million British thermal units (mmBtu), up 10 cents from a more than two-month low struck over the past two weeks.

Japanese power utility Kansai Electric Power Co (T:9503) was seeking two cargoes for delivery in December, while Japan’s Tohoku Electric Power Co Inc (T:9506) was seeking a cargo for delivery over Dec. 25 to Dec. 30, traders said.

Kansai could have purchased at least one cargo at $10 to $10.30 per mmBtu, while Tohoku may have received lowest offers for its cargo requirement in the range of $10.60 to $10.70 per mmBtu, they added.

Japan’s Nippon Steel & Sumitomo Metal <9801.T> had been sounding out the market about a potential spot purchase for delivery in the second half of December to January, one trader said.