Rising demand for liquefied natural gas (LNG) in the top importing regions of Asia and Europe hasn’t been enough to spark an increase in spot prices, which continue to languish.
The price of spot LNG for delivery to north Asia slipped to $16.50 per million British thermal units (mmBtu) in the week to Nov. 10, down from $17.00 the prior week.
The price has dropped for three consecutive weeks, but is still higher than the recent low of $13.50 per mmBtu for the seven days to Oct. 6.
The usual pattern for the spot price in Asia is a rally into the northern winter followed by a decline in the lower demand shoulder season ahead of summer.
However, prices have so far failed to get their usual seasonal bump as demand remains relatively subdued and supply is more than adequate, especially from the United States.
Asia’s imports of LNG are forecast to rise to 22.67 million metric tons in November from October’s 21.18 million, according to data compiled by commodity analysts Kpler.
The November figure will also be a slight increase from the 21.41 million metric tons from the same month last year.
Much of the increase in Asia’s imports of the super-chilled fuel comes from China, the world’s second-biggest buyer, with Kpler estimating arrivals of 5.67 million metric tons in November, up from 5.41 million in October, but still below the 6.12 million from November 2022.
Japan, the world’s biggest LNG importer, is expected to see arrivals of 5.41 million metric tons in November, unchanged from October and slightly down from 5.65 million in November last year.
India, Asia’s fourth-biggest LNG buyer, is expected to import 1.3 million metric tons in November, down from 1.85 million in October.
Source : Reuters