Japanese buyers are stockpiling liquefied natural gas (LNG) ahead of winter, helping to stabilize Asian spot prices for the commodity. Several market players estimated spot prices for October delivery to Northeast Asia would hover around US$4.70/mmBtu, steady from last week.
Japanese buyers have been looking for cargoes for delivery in the last quarter as hot weather drew down their stocks. They also take advantage of low LNG prices during the current time.
An industry source said that Japan's Tohoku Electric bought a cargo at US$4.60 to US$4.70/mmBtu for October 16 to 20 delivery. Japan's Hokuriku Electric purchased a shipment from Petronas for the second half of November delivery. Japan's Hokkaido Electric Power also purchased LNG for delivery over November. Sources also added that demand also came from India's Torrent Power and IOCL which seek a cargo for October delivery.
Supply was ample with Australia's Ichthys LNG offering a cargo. Meanwhile, Indonesia's Donggi-Senoro export plant and Egyptian Natural Gas Holding Co offered two and three cargoes, respectively.
