Asian spot LNG price hits record high

Asian spot LNG price surged to a record high on Thursday, boosted by strong winter restocking demand among Asian end-users, according to S&P Global Platts.

Platts said that the JKM for November rose to $34.47/MMBtu on September 30.

This is the highest level for the LNG benchmark for Asian spot LNG since Platts launched it in early 2009, it said.

It broke the previous record of $32.50/MMBtu reached in January.

LNG prices in the region continued to be supported by robust European gas hub prices and intense portfolio optimization activity by international LNG suppliers, the agency said.

The gas price at the Dutch TTF hub, a European benchmark, trades over 90 euros per megawatt-hour.

Also, lower winter temperatures forecast in China and South Korea, as well as concerns over a power shortage in China were sparking spot demand for winter cargoes by end-users, Platts said.

In addition, the recent rally in LNG prices in Europe and Asia has dramatically widened the economic incentive to switch from natural gas to oil in power generation, according to a Rystad Energy report.

If the gap between LNG and oil prices remains wide, Asia would boost oil demand by 400,000 barrels per day on average over the next two quarters, Rystad said, adding this would support already high oil prices. Brent oil reached $80 per barrel for the first time in nearly three years this week.

Most Popular

Kimmeridge’s Commonwealth inks long-term LNG supply deal with Glencore

Under the heads of terms, Glencore will buy 2 million tonnes per annum of LNG for 20 years from...

Gunvor’s unit takes Pertamina’s PGN to arbitration over LNG supply dispute

Gunvor Singapore initiated the arbitration processes on September 13, according to PGN. The case was filed with the London Court...

Woodside CEO says Tellurian deal was ‘too good to pass up’

"When the Tellurian opportunity crossed our desk, we thought.. this is really too good to pass up," O'Neill...

More News Like This

Atlantic LNG shipping rates rise for first time in six weeks

Last week, Atlantic rates continued to decrease. “Spark30S Atlantic rates experienced a weekly increase for the first time in six weeks,...

Atlantic LNG shipping rates continue to slide

Last week, Atlantic rates dropped below $60,000 per day. “Spark30S Atlantic rates continued to fall this week, dropping $1,500 to...

Atlantic LNG shipping rates drop below $60,000 per day

Last week, both Atlantic and Pacific rates continued to slide. “Spark30s Atlantic rates fell by $1,250 to $59,250 per day, marking...

Spot LNG shipping rates continue to slide, European prices rise

Last week, both Atlantic and Pacific rates declined. “Spark30s Atlantic rates experienced a third week-on-week decrease, falling by $1,000 to $60,500...