Northeast Asia LNG Prices Jump Most in 10 Months, Buyers Seeking Cargoes

File image courtesy Nakilat

Oct. 16 (Bloomberg) — Short-term liquefied natural gas prices for Northeast Asia jumped by the most since December as buyers sought more cargoes for winter, according to Energy Intelligence Group.

Prices for the power-station fuel for delivery over the next four to eight weeks increased to $16.80 per million British thermal units in the period ended Oct. 14, up from $16.10 a week earlier, the New York-based research company said on the website of its World Gas Intelligence publication. Southwest Europe prices were at $11.80, up from $11.70.

LNG prices are forecast to rise this week, according to traders surveyed by Bloomberg News through Oct. 11. Asian buyers typically increase purchases of spot cargoes from December to March to meet peak heating and power demand during winter in the northern hemisphere.

Producers have tied up most additional output for the rest of the year in short-term or strip deals as well as incremental sales to long-term clients, WGI said.

Some Japanese utilities are still seeking late-November cargoes, bidding “in the low- to mid-$16s,” while Chinese and South Korean buyers will probably be seeking cargoes soon, WGI said.

Angola LNG shipped a partial cargo aboard Soyo to South America yesterday, ahead of planned maintenance that will last about 50 days, WGI said.