Gas Processing & LNG is Produced by Gulf Publishing Holdings LLC



Asia LNG prices slip despite strong competition, limited Russian supply

Asia liquefied natural gas (LNG) prices slipped this week but are expected to remain at high levels on concerns over low European gas storage levels due to strong competition from Asia and diminishing hopes for more gas supply from Russia.

The average LNG price for December delivery into Northeast Asia was estimated at about $34.50 per metric million British thermal units (mmBtu), down $3.90 from the previous week, industry sources said.

Prices for November delivery were estimated at $34, down $4.50 from last week.

“Currently, fundamentals in Asia remain relatively stable as demand in China is picking up which is offsetting weak demand in Japan,” a London-based industry source said.

“With the first sign of colder-than-normal temperatures expected to come in to the region, there could be some early-season heating demand, and with Europe still structurally undersupplied, global prices will remain supported until risk of cold weather fully passes,” he added.

China’s Beijing Gas was looking for a cargo for delivery over December to January, an industry source said.

Others were waiting on the sidelines for prices to drop further, a Singapore-based trader said.

Adding to the energy crunch in Europe, Russian gas giant Gazprom booked only a third of additional gas transit capacity via the Yamal-Europe pipeline via Poland for November while not booking any volumes via Ukraine.

There are also ongoing and projected production outages which could remove an incremental 4% of monthly supply, or 20 LNG cargoes, from the expected market between November and February, Rystad Energy said.

Shipping rates which have more than doubled from earlier this month are also expected to put upward pressure on prices.

A gas shortage in Singapore is also expected to boost demand for LNG from the city state.

In tenders and deals, Kuwait Petroleum Corp sought five cargoes for next year, while Japan’s Tohoku Electric bought six cargoes from BP for delivery in the first half of 2022, sources said.

Integracion Energetica Argentina (IEASA) and the Electricity Generating Authority of Thailand (EGAT) sought two cargoes each for November to December delivery.

Cargo offers were also seen from Abu Dhabi, Angola LNG, Russia’s Novatek and Sakhalin Energy.


Copyright © 2019. All market data is provided by Barchart Solutions. Futures: at least a 10 minute delay. Information is provided 'as is' and solely for informational purposes, not for trading purposes or advice. To see all exchange delays and terms of use, please see disclaimer.

                                  CMEGroup                                     Icelogo

FEATURED COLUMNS

Editorial Comment
-Adrienne Blume
The editors of <i>Hydrocarbon Processing</i>, sister publication to Gas Processing & LNG, will release their “HPI Market Data 2022” annual forecast report in October.
Industry Focus: Sensor advances allow pipeline leak detection to take to the skies
-Doug Baer
Sustainability and green initiatives have always been laudable objectives, with mission statements around the world confirming commitments to lower emissions and energy consumption, and increase recyclability, to name a few.
Maintenance and Reliability: Prevent unplanned shutdowns for LNG liquefaction facilities
-Peter Zhang
Although an unplanned shutdown is an integrated part of the operational and safety management system of an operating plant, unplanned shutdowns for a modern LNG liquefaction operating facility often become some of the costliest events for the facility owner.
Regional Focus: Balancing Africa’s world-class LNG projects and the environment
-Shem Oirere
The construction of world-scale natural gas processing plants by three of Africa’s top natural gas producers has attracted scrutiny, despite efforts to commercialize the continent’s hydrocarbon resources and expand energy supply on the continent.


Throughput optimization for pipelines and gas plants

Register Now

Many processes within oil and gas pipelines and processing plants depend on maintaining specific temperatures and pressures at which the process fluids are liquids or gases. In addition, anytime water is a component in the process fluid hydrates can form and plug piping and vessels. Learn how Sensia’s Throughput optimization solution allows operators, and control systems to “see inside” the process in real time to understand where the facility is operating with respect to critical physical constants, including the phase envelope and hydrate temperature. This insight allows for more stable operation, reduced energy expenditure and associated emissions, and greater facility throughput. Case studies will include controlling methanol injection, managing heaters, virtual sensors for sulfur recovery units and more.

April 1, 2021 10:00 AM CDT

Register Now

 

Please read our Term and Conditions, Cookies Policy, and Privacy Policy before using the site. All material subject to strictly enforced copyright laws.
© 2021 Gulf Publishing Holdings LLC.