LONDON, Jan 28 (Reuters): Asian spot liquefied natural gas (LNG) prices remained below $10 per million British thermal units (mmBtu) for the second week, as solid inventories and mild weather continue to outweigh geopolitical risk related to the Red Sea conflict.
The average LNG price for March delivery into north-east Asia remained unchanged from last week's level at $9.50/mmBtu, industry sources estimated.
"The market has been subdued for most of the week. However, we're now seeing volatility with utilities coming in who are short," said Toby Copson, head of energy, APAC, at commodities broker Marex.
Spot LNG demand from price-sensitive Asian buyers has seen an increase, as Asian LNG prices have fallen below the $10/mmBtu mark, said Laura Page, manager of gas and LNG insight at data analytics firm Kpler.
She added that the materialising demand in Asia, coupled with recent downside pressure on the European gas prices at the Dutch TTF hub has seen US netback shift back in favour of Asia. Netback is the effective price earned by a producer of LNG at a particular point.
Attacks in the Red Sea by Iranian-backed Houthi militants have recently pushed Qatar, one of the world's largest LNG exporters, to take a longer route via the Cape of Good Hope, delaying shipments to European clients.
S&P Global Commodity Insights assessed its daily North West Europe LNG Marker (NWM) price benchmark for cargoes delivered in March on an ex-ship (DES) basis at $8.054/mmBtu on Jan. 25, a $0.70/mmBtu discount to the March gas price at the Dutch TTF hub.
Spot LNG prices remain flat below $10/mmBtu
FE Team | Published: January 28, 2024 23:38:41
Spot LNG prices remain flat below $10/mmBtu
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