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Asia LNG Slips below 30mmBtu as Supply Improves in Europe

SINGAPORE (Reuters) – Asia liquefied natural gas (LNG) prices fell for a third straight week, as improved gas supply in Europe reduced the competition for LNG in Asia, though losses were limited by fresh demand from Pakistan and Turkey.

The average LNG price for December delivery into Northeast Asia fell to $29.50 per metric million British thermal units (mmBtu), down $1.50 or about 5% from the previous week, industry sources said.

European wholesale gas prices fell this week after flows from Russia through the Yamal pipeline resumed after a five-day pause.

LNG cargoes were also sold from Oman and Australia in the spot market, the sources said.

Chevron has completed maintenance at its Wheatstone LNG plant in Western Australia, with cargo exports expected to go up in the fourth quarter.

Still, ongoing issues at Freeport LNG’s plant in Texas, where feedgas to the plant fell to its lowest since September, are supporting prices in Asia, traders said.

Spot demand continues to be firm with some Chinese buyers scouting the market for cargoes for delivery in winter, one of them said.

Pakistan LNG is seeking two cargoes for delivery in November through an emergency tender after its term suppliers cancelled delivery of cargoes, sources have said.

Turkish state energy company Botas is seeking nine LNG cargoes for delivery in December, January and February, an industry source said, adding that the tender closed on Nov. 4.

The Electricity Generating Authority of Thailand (EGAT) earlier this week sought a cargo for delivery in December while Japan’s Hokkaido Gas was seeking a cargo for delivery in winter, industry sources said.

Temperatures are expected to fall below normal in Seoul, Beijing and Shanghai over the next two weeks, weather data from Refinitiv Eikon showed, which could also boost demand for the super-chilled fuel further.

Reporting by Jessica Jaganathan; Editing by Subhranshu Sahu