Asian and China LNG Price Rebound as Buying Recovers
Asian LNG Spot cargoes saw strong buying, and the price remained firm over the past several weeks. It is considered that the buying intentions for summer deliveries on spot cargoes to replace contracted cargoes boosted the whole market atmosphere as well as the strong oil prices, despite the demand is weak in most Asian countries in the spring lull season.
Asian LNG prices for delivery in June LNG-AS were at $8.1/mn Btu, up $0.15/mn Btu from last week’s value and more than 15% above a seasonal low from early April. The CFR China price closed at $8.15/mn Btu on May 4, also up 16% from early April, but the price then inched down to $8.09/mn Btu later days.
In physical markets, arrivals of LNG carriers increased notably this week in China, driving by the piped gas supply restriction from China’s major pipeline operator CNPC and the possible price rise of piped gas which is about to happen allegedly. Taiwan’s state utility CPC bought LNG for June via a tender for about $8.30/mn Btu, according to the report. South Korea’s SK Energy is also seeking a cargo for early June and July delivery, while India’s Gail awarded 12 LNG cargoes to Dominion Energy’s Cove Point LNG export facility in the United States this week.
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