SINGAPORE, June 22 (Reuters): Asian spot liquefied natural gas (LNG) prices held steady this week amid higher temperatures in Northeast Asia and the anticipation of the approaching monsoon season in South Asia.
The average LNG price for August delivery into north-east Asia was at $12.60 per million British thermal units (mmBtu), industry sources estimated.
"Higher temperatures forecasted for Northeast Asia next week are offset by cooler weather in South and Southeast Asia as the monsoon season approaches," said Ana Subasic, a natural gas and LNG analyst at data and analytics firm Kpler.
"Asian LNG front-month prices are also expected to be steady next week with expectations of Australia's Wheatstone LNG supply returning to production."
On June 10, Chevron suspended production at its Wheatstone gas facility in Australia to repair the platform's fuel gas system. It said on Friday that restart activities at the facility are ongoing.
Hot weather across Asia had spurred LNG demand, pushing prices up to a six-month top last week.
In China, southern provinces issued severe flood warnings due to heavy rains, but areas in the northwest and east experienced record-high temperatures.
"While expectations for power sector gas burn elsewhere in northeast Asia are firm, with hot weather forecast for the coming weeks, there remains some uncertainty on stock levels, with some suggesting high South Korean stocks which could limit additional LNG demand," said Samuel Good, head of LNG pricing at commodity pricing agency Argus.
Spot LNG prices hold steady amid higher temperatures
FE Team | Published: June 22, 2024 21:56:49
Spot LNG prices hold steady amid higher temperatures
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