Northeast Asia’s benchmark spot LNG prices stood at $39.021 per MMBtu on December 14, compared to Northwest Europe’s prices which hit a record high of $41.946 per MMBtu. Asian LNG prices are typically higher than Europe’s because the region has a heavier reliance on imported cargoes, especially during the peak winter demand. However, European prices have been elevated due to low inventories, reduced Russian supplies, and uncertainty over the Nord Stream 2 gas pipeline.
Meanwhile, supply issues in Indonesia’s Bintulu and Australia’s Gorgon seemed to have waned, with production at decent levels, traders said. At the same time, inventory levels are reported to be comfortable in China and Japan despite cold weather setting in. Some parts of China are expected to experience colder temperatures in February. However, it would coincide with the Lunar New Year and the Winter Olympics, when industrial gas demand is expected to be down.
