Asian spot LNG prices reached a more than four-month high this week.
They tracked firmer European gas prices and those seen in the US.
One of the main reasons for the hike was that major North Asian cities faced warmer weather, which should boost demand.
The average LNG price for September delivery into northeast Asia LNG-AS was estimated at about $3.10 per MMBtu this week, up 40 cents from the previous week.
Prices for cargoes to be delivered in October were estimated at about $3.50 per MMBtu.
“Market is bullish, due to supply issues from Gorgon and also because European and US gas markets are firm,” said a Singapore-based LNG trader talking with Reuters.
He was referring to the delayed restart of Gorgon train at the Australian Chevron-managed LNG plant, which will not now be operational until early September.
The recent spot price rise had persuaded buyers to snap up cargoes at prices that were still low compared with previous years, the trader said.
Prices across Europe also rose this week on the back of lower Russian flows, while those on the US Henry Hub gained due to hotter weather than normal.
Tokyo, Beijing and Shanghai are expected to see warmer temperatures next week, according to Refinitiv weather data, potentially boosting demand for electricity, as people switch on their air conditioners.
Malaysia’s Petronas sold a cargo from the Gorgon LNG plant for mid-September loading to Gunvor at about $2.90 per MMBtu, one industry source said.
PetroChina put in the lowest offer to a tender issued by Pakistan LNG for a mid-August cargo, but Posco was thought to have secured the business.
Sakhalin and Papua New Guinea LNG plants sold September-loading cargoes at above $3 per MMBtu, while Nippon Steel bought a cargo for around $3 to $3.15 per MMBtu, traders said.
India’s Reliance Industries and Indian Oil Corp, South Korea’s PRISM Energy and KOMIPO, Japan’s Tohoku Electric, and China’s Shenzhen Energy were in the market looking for September/October cargoes, trading sources said.
