GLOBAL LNG-Prices edge higher ahead of warmer than usual weather

Asian spot LNG prices edged higher this week ahead of anticipated warmer-than-usual temperatures in some parts though demand in the region remained sluggish.

The average LNG price for September delivery into northeast Asia was estimated to be about $2.40 per million British thermal units (mmBtu), several trade sources said.

Prices for cargoes delivered in August were estimated to be about $2.30 per mmBtu, 10 cents higher than the previous week.

Most areas in Japan, the world's top LNG importer, are expected to experience warmer-than-normal weather between July and September, the Japan Meteorological Agency said in its three-month forecast on July 1.

Still, gas demand in the region remained sluggish amid fears of a second wave of coronavirus in some countries.

Nearly 30 laden LNG tankers are idling in mostly Asian and European waters, as traders take advantage of cheap prompt prices and freight rates in a bet that high winter demand will eventually boost the market.

Some spot demand from Taiwan and India also boosted prices. Taiwan's CPC Corp bought a cargo for delivery in the second half of August at about $2.30 to $2.50 per mmBtu while India's Reliance bought a cargo for delivery over Aug. 29 to 31 delivery at about $2.40 per mmBtu, traders said.

Indian Oil Corp bought a cargo for Aug. 21 delivery at about $2.35 mmBtu, they added.

On the sell side, Abu Dhabi National Oil Co (ADNOC) has sold a mid-August loading cargo at about $2.30 to $2.40 per mmBtu, one source said.

Oman LNG offered a cargo for delivery in late August or early September while Russia's Sakhalin 2 plant sold an August-loading cargo at around $2.35 to $2.40 per mmBtu, traders said.

Angola LNG offered 12 cargoes a year for the 2020-2022 period while Gail India issued a swap tender for one cargo a month for 2022, traders said.