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

Cheniere to start site preparation for two more Corpus Christi LNG trains

US LNG exporting giant Cheniere is seeking approval from the US FERC to start site preparation activities for two more midscale trains at its Corpus Christi LNG plant in Texas.

Woodside names Sarah Bairstow as Louisiana LNG head

Australian LNG player Woodside has appointed Sarah Bairstow to lead its Louisiana LNG project.

Amigo LNG, Sahara seal 20-year SPA

Amigo LNG, a unit of LNG Alliance, has signed a 20-year sales and purchase agreement with Sahara Group to supply the latter with liquefied natural gas from its planned 7.8 mtpa LNG export plant in Mexico.

More News Like This

LNG shipping rates continue to decrease

Spot LNG freight shipping rates in both basins continued to decrease this week, while European prices increased compared to last week.

LNG shipping rates continue to drop

Spot LNG freight shipping rates in both basins and European prices continued to decrease this week.

Atlantic LNG shipping rates, European prices continue to drop

Atlantic LNG freight shipping rates and European prices continued to decrease this week.

Atlantic LNG shipping rates, European prices down

Atlantic LNG freight shipping rates and European prices decreased this week compared to the week before.