- Highest seasonal price since 2013
- Higher prices don’t deter buyers in South Asia
- Wholesale gas prices in the Netherlands and UK hit record highs
SINGAPORE, July 2 (Reuters) – Spot prices for liquefied natural gas (LNG) in Asia hit a new eight-year seasonal high this week, as demand remained robust globally for production needs electricity in summer.
The average LNG price for August delivery in North East Asia was estimated at around $ 14 per million British thermal units (mmBtu), up $ 1.50 from the previous week, the report said. commercial sources.
This is the highest level spot prices have climbed for this time of year since 2013, according to Reuters data.
Global natural gas prices are reaching multi-year highs, with high temperatures increasing demand for power generation in the northern hemisphere for air conditioning and traders in some areas restocking their stocks before winter. Read more
Demand from Latin America was also strong as drought affected Brazil’s hydropower, increasing its LNG imports, trade sources said. Argentina’s energy company Integracion Energetica Argentina (IEASA) is also looking for four shipments to be delivered in August and September, they added.
Buyers in Bangladesh and Pakistan paid more than $ 13 per mmBtu for cargoes to be delivered in July to meet summer air conditioning demand, the sources said.
Bangladesh is expected to continue procuring a one-time shipment per month from August to November, a senior official at state-owned company Petrobangla told Reuters.
“Global LNG prices are rising, but nowhere is this the abnormal level we saw at the start of this year,” he added.
Gail India is looking for a cargo to be delivered in July to Dahej in a tender that ends Friday, while India’s Petronet has likely not awarded a tender looking for cargoes to deliver in the third quarter, industry sources said.
Russian firm Sakhalin Energy likely assigned a cargo for the August load at around $ 13.70 to $ 13.95 per mmBtu on a delivered basis, one said.
In a ripple effect of high spot LNG prices in Asia, benchmark European gas prices soared this week, with first-month UK and Dutch contracts both reaching record highs on Thursday.
Reporting by Jessica Jaganathan, additional reporting by Ruma Paul in Dhaka; edited by Uttaresh.V
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