Asia liquefied natural gas (LNG) prices slipped for a third consecutive week as improved gas supply in Europe reduced pressure on importers to bid up offers. LNG prices for December delivery into Northeast Asia averaged $29.50 per MMBtu last week, about $1.50 or 5% lower than the prior week, market sources said. European wholesale gas prices also decreased last week as Russian gas flows in the Yamal pipeline restarted after being stuck in reverse for several days.
Oman and Australia also offered spot cargoes last week, the sources added. Chevron has wrapped up a turnaround at its Wheatstone LNG plant in Western Australia, which is expected to resume exports in the fourth quarter. However, the Freeport LNG plant in Texas continued facing issues with feedgas flows to the facility falling to a two-month low. Asia’s LNG demand is expected to remain elevated as weather forecasts indicate below-normal temperatures in Seoul, Beijing, and Shanghai until at least next week.
