Asian spot LNG prices rose last week amid high summer temperatures and a global supply tightness. Market participants said spot prices for January delivery into Northeast Asia averaged $15.60 per MMBtu last week, up by $1.15 from the prior week. This marks the highest level since 2014, with the exception of a price peak in January. Beijing, Shanghai, Tokyo, and Seoul are expected to see higher-than-average temperatures this and next week.
Market sources also said that Asian buyers are also competing for cargoes with European buyers amid low inventories. They revealed that Pakistan LNG paid more than $15 per MMBtu for September delivery to avoid power outages. The company is also looking to purchase seven cargoes for October-November delivery. Angola LNG has offered a cargo for August-September delivery to buyers in Brazil, Mexico, Europe, India, Pakistan, and Southeast Asia.
Despite supply crunches in the spot market, US developer Tellurian Inc said it had secured sales for its proposed 27.5 million tons/year Driftwood LNG plant in Louisiana after a series of delays, providing relief for long-term US supply. Tellurian said it would start construction later this summer, with the project’s first phase estimated to cost $16.8 billion.
