Utilities push Asian spot LNG prices up
Spot LNG prices in Asia have jumped for the third week running as the demand from Japan and South Korea remained strong.
Sources told Reuters that the prices have been bumped up by the delivery delays from Brunei that have ended. LNG carrier Amani has reportedly loaded a cargo and left the facility on August 30, after being anchored off the facility for a week.
The price of spot LNG for October delivery to Asia has reached $11.5 per million British thermal units, $0.1 up on the price in the previous week.
It was noted that Japanese utilities are stocking up for the upcoming winter when the demand is expected to peak.
The October buying spree was prompted by high summer temperatures with the utilities depleting their reserves that now have to be stocked back up for the winter.
Further to October deliveries secured by both Kyushu and Kansai Electric while Saibu Gas is looking to secure one LNG cargo four each quarter from 2019 to 2022.
Sources also said that a South Korean buyer is also looking to secure cargoes for delivery over a five to 10-year period.
Novatek-operated Yamal LNG project has reportedly offered cargoes for delivery over the winter period, however, it was not clear whether any cargoes have been sold.
LNG World News Staff