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

Shell ships first LNG Canada cargo

LNG giant Shell and its partners have shipped the first cargo produced at the LNG Canada facility in Kitimat, on the west coast of Canada.

Knutsen, Shell name ninth LNG newbuild

Norwegian shipowner Knutsen and UK-based energy giant Shell have named the ninth and final LNG carrier in a series of 174,000-cbm vessels.

BP seals LNG SPA with Italy’s A2A

UK-based energy giant BP has signed a long-term liquefied natural gas (LNG) supply deal with Italian electricity and gas distributor A2A.

More News Like This

Atlantic LNG shipping rates down, Pacific rates up

Atlantic spot LNG shipping rates decreased to $48,750 per day this week, while Pacific rates rose compared to the week before.

Atlantic LNG shipping rates jump to $49,750 per day

Atlantic spot LNG shipping rates rose to $49,750 per day this week, while European prices also jumped compared to the previous week.

Atlantic LNG shipping rates rise to $33,000 per day

Atlantic spot LNG shipping rates rose to $33,000 per day this week, while European prices increased slightly compared to the previous week.

Spot LNG shipping rates remain steady this week

Spot charter rates for the global liquefied natural gas (LNG) carrier fleet remained steady this week, while European prices rose compared to the previous week.