LNG Prices in Asia Advance on Shortage of Spot Cargoes, WGI Says

Liquefied natural gas prices for Northeast Asia rose this week on a shortage of spot cargoes for winter, according to Energy Intelligence Group.

Power-station fuel for delivery over the next four to eight weeks increased to $18.60 per million British thermal units in the period through today, up from $18.10, the New York-based research company said on the website of its World Gas Intelligence publication. Southwest Europe prices increased to $13.20 from $12.60.

LNG prices are forecast to rise this week, according to four of six traders surveyed by Bloomberg News through Nov. 15. Asian buyers typically purchase spot cargoes from December to March to meet peak heating and power demand during the northern hemisphere’s winter.

Asian companies are trying to secure additional supply as they discuss long-term contracts for 2014, WGI said. This has reduced the number of short-term shipments available for the North Asian winter, according to the research company.

North Asian utilities and gas companies want as many as 10 spot cargoes for January delivery, while producers are offering five shipments loaded from storage in Europe, WGI said.

Latin America

Latin America has taken two-thirds of Europe’s reloaded LNG this year, compared with one-third last year, according to the research company.

Brazil’s state-owned Petroleo Brasileiro SA (PETR4) imported 64 LNG cargoes as of October this year compared with 45 shipments last year, Angelica Laureano, the company’s executive manager, said at an industry event in Paris yesterday.

Rio de Janeiro-based Petrobras will import as many as 15 cargoes a month in 2014, Rodrigo Vilanova, LNG trading manager, said Sept. 25. Brazil doesn’t have long-term supply contracts, according to data compiled by Bloomberg.

To contact the reporter on this story: Chou Hui Hong in Singapore at chong43@bloomberg.net

To contact the editor responsible for this story: Alexander Kwiatkowski at akwiatkowsk2@bloomberg.net

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