Industry sources said the average LNG price for March delivery in North-East Asia fell to around $23.00 per metric million British thermal unit (mmBtu), down $9.60 or nearly 30% from the previous week.
Asian spot liquefied natural gas (LNG) prices fell this week as large Chinese sell-off tenders indicated that supplies were well-stocked amid continuing weak Asian demand.
Industry sources said the average LNG price for March delivery in North-East Asia fell to around $23.00 per metric million British thermal unit (mmBtu), down $9.60 or nearly 30% from the previous week.
China’s Sinopec on Wednesday issued a tender to sell up to 45 cargoes this year. Under the tender, which is closing today, Sinopec delivered two to five cargoes per month between February and October on an ex-ship basis.
China National Offshore Oil Company, or CNOOC, is also closing a tender today to sell liquefied natural gas cargo for May to November delivery, traders said.
One trader said the market would be watching how many cargoes would be sold as this could be an attempt to push prices lower by sending bearish signals.
The arrival of several LNG gas tankers in Europe has helped drive down prices but concerns remain over Russia-Ukraine tensions.
photo credit: petronet lng
“Spot buying activity from Asian buyers has been calm for several weeks now, as many had earlier purchased cargo and experienced a warm winter later,” said Edmund Siou, principal analyst at consultancy FGE.
He added, “Big sell tenders from Sinopec and CNOOC are a sign of further slowdown for the LNG market, especially for Asian LNG demand in the summer. Asian buyers may be looking to time the start of their summer buying activity and wait will be doing it.”
According to data from Refinitiv Eikon, China will experience mild temperatures over the next 10 days – 1-10 degrees Celsius warmer than normal – but there is a mixed picture for South Korea and Japan.
Meanwhile, Indonesia’s government eased coal export restrictions for 139 companies by Thursday, a senior energy ministry official said, with the aim of easing supply shortfalls and power shortages by firms to meet local market sales requirements. after completion.
“Indonesia’s dial-down on coal exports imposed earlier in January brushed teeth out of any risk in LNG prices,” said Kaushal Ramesh, senior gas market analyst at consultancy Rystad Energy.
Europe continues to receive a significant amount of LNG tankers, with the first-ever LNG shipment from Indonesia arriving in Greece at the end of last week.
The arrival of several LNG gas tankers in Europe has helped drive down prices but concerns remain over Russia-Ukraine tensions.
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