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Global LNG-Price rebounds as North Asian buyers replenish inventory - LNG traders

Gasoil News - Published on Tue, 13 Feb 2018

Image Source: brecorder.com
Reuters reported that Asian spot liquefied natural gas (LNG) prices rebounded this week as persistently cold weather in North Asia forced buyers to enter the spot market to replenish inventory. Spot prices for March LSG-AS delivery in Asia climbed 40 cents to USD 10.60 per million British thermal units (mmBtu) this week, according to several LNG traders in Asia.

They said that cargoes for delivery in the first half of March are trading between USD 10.70 and USD 11 per mmBtu while cargoes for the second half of the month are trading at just above USD 10 a barrel.

Traders said that Angola LNG sold a cargo for February at close to USD 11 per mmBtu to a Chinese company. The company has offered a March cargo as well.

A Singapore-based LNG trader said that “People were waiting for prices to come down, so inventory has been drawn down, but due to the cold weather they have no choice but to enter the spot market at these prices.”

He said that Japanese utilities, Chinese and South Korean companies are either buying or enquiring for March cargoes. He expected some of the demand to roll over to April, narrowing the backwardation between March and April. Backwardation is a price structure where prices for cargoes loading in the prompt are higher than those loading later.

China’s imports of LNG in January rose to another record high of 5.14 million tonnes, Thomson Reuters Eikon shiptracking data showed ahead of official customs data due later this month.

Traders said that the strong appetite is expected to continue this year as China has announced a more ambitious plan of switching heating systems in 4 million households and industrial plants from coal to gas or electricity this year.

Source :

Posted By : Nanda Koijam on Tue, 13 Feb 2018
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