Asian spot LNG prices rise to $8.50/mmBtu
Prices for liquefied natural gas (LNG) in Asia have increased to their highest since January this year, boosted by peak-demand winter heating season.
Spot prices for Asian LNG rose 10 cents to $8.50 per million British thermal units (mmBtu) this week, Reuters reported on Friday.
Climbing Chinese demand amid its huge programme to move millions of households away from coal to gas heating as well as a push for LNG as a transport fuel have helped drive prices 55-percent higher from their 2017 lows, the report said.
Prices have also been supported by strong imports from LNG buying giants Japan and South Korea, which have been stockpiling in preparation of the peak-demand winter heating season.
However, despite the tighter conditions, many traders expect the spot LNG market to be capped, which is also reflected in the forward curve which sees prices fall back below $6 per mmBtu by mid-2018, the report said.
LNG World News Staff