Spot liquefied natural gas (LNG) prices climbed in mainly Asia and Europe on the back of robust demand and supply concerns.
For November delivery, the average LNG price to northeast Asia was higher by USD0.30/mmBtu compared to the previous week to USD5.50/mmBtu. For the December delivery, the prices were around USD5.70/mmBtu.
In the fourth quarter of 2020, Asia and Europe are expected to see higher demand for LNG. According to consultancy Energy Aspects, the fourth quarter demand in Northeast Asia would likely see a significant yearly jump due to the increased heating load compared to last winter.
In South Korea, specifically, additional LNG demand might occur due to lower nuclear output.
In South Asia, India’s demand recovered to normal levels after earlier tumbled on the back of the coronavirus pandemic earlier this year. Pakistan was seen to order a significant amount of LNG cargoes for November and December.
Supply concerns came from the US as Hurricane Delta forced sizable LNG producers to shut their gas output in the US Gulf of Mexico. Other than that, the oil workers’ strike in Norway has supported European gas prices.
