Asian spot LNG prices rose to a more than a six-month high last week on concerns over production from Australia’s Gorgon plant and buyer demand in the region.
The average LNG price for September delivery into northeast Asia LNG-AS was estimated to be between $3.60 and $3.80 per MMBtu, $0.60 per above the previous week’s level.
October’s delivery price was between $3.80 and $4 per MMBtu.
This is for the first time since the end of January when prices increased to levels close to $4, according to Reuters data.
Chevron’s Gorgon Train 2 was closed for maintenance in May. Its restart date has since been put back to September from July, due to heat exchanger issues. Two other Gorgon trains were also ordered to be inspected after safety concerns were raised.
Gorgon offtakers have probably bought several cargo replacements in the past two weeks, traders told newswires.
Some buyers in Japan, China and India have also bought cargoes, but the traders said that overall demand was subdued.
China’s Shenzhen Energy has said to have bought a September delivery cargo at $3.40-$3.50 per MMBtu, sources said.
In addition, Indian Oil Corp (IOC) was believed to have purchased a late September cargo at around $3.40 per MMBtu.
It was also said that India’s Reliance Industries had bought an October delivery cargo at around a $0.15 discount to S&P Global Platts Japan Korea Marker (JKM) price and a November cargo at a $0.45 discount to JKM.
Meanwhile, European gas prices fell last week after picking up during the previous week, however, they were still at an over four-month high. Traders said that they expected more cargoes to arrive in Europe in September and October than previously thought, following the price rise, which made US exports to Europe economical again.
