Bullish factors have struck the LNG shipping market: robust Asian spot gas demand in a cold winter, record-high exports from U.S. projects and perhaps most importantly delays to traverse the Panama Canal.
Colder than-average winter in Asia drives demand Prices are expected to ease in March
RIO DE JANEIRO, Jan 8 (Reuters) - Asian spot prices for liquefied natural gas (LNG) jumped nearly 50% this week to a record high, based on available data going back to 2009, as logistical issues disrupt supply to the world’s top consuming region.
The average LNG price for February delivery into northeast Asia LNG-AS is estimated to be around $21.45 per million British thermal units (mmBtu), according to pricing agency S&P Global Platts, up 47% from the previous week ($14.60).
The price is a record high since Platts started assessing the Japan-Korea-Marker (JKM) in Feb. 2009, which combines deals from some of the world’s biggest consumers and became the reference price for spot deals.
Spanish Natural Gas Prices Hit Record as Competition for LNG Cargoes Heats Up
Global natural gas prices continued a relentless move higher on Friday, as spot prices in Spain shattered records and all-time highs in the northern Asia market showed no signs of slowing amid a cold snap and supply crunch supporting the bullish run.
In Spain, a major gas-consuming country that hosts more liquefied natural gas (LNG) import terminals than anywhere else in Europe, Punto Virtual de Balance (PVB) spot prices hit an all-time record of $18.71/MMBtu this week. The Spanish benchmark is trading near the Japan Korea Marker (JKM) spot price, which has shot through the roof over the last week as below normal temperatures in China, Japan and South Korea left buyers in need of prompt cargoes.