Asia LNG Prices Unchanged as Buyers Refuse to Pay More, WGI Says

Liquefied natural gas prices for Northeast Asia were unchanged after rising last week as buyers “balk’ at paying more for short-term, or spot, cargoes, according to Energy Intelligence Group.

LNG for delivery over the next four to eight weeks remained at $19 per million British thermal units in the seven days through today, the New York-based research company said on the website of its World Gas Intelligence publication. Southwest Europe prices increased to $13.80, from $13.60.

Spot LNG at $19 per million Btu is at parity with oil, according to WGI. Prices in long-term purchase contracts, generally more than 10 years, are typically linked to the cost of Brent crude or the so-called Japan Crude Cocktail.

Prices may rise as buyers are facing difficulties getting additional cargoes from term suppliers for winter, WGI said. Demand could also come from China on colder weather amid the country’s ‘‘worst-ever” gas shortage, it said.

Prices are forecast to rise this week, according to four of six traders surveyed by Bloomberg News through Nov. 29. Asian LNG importers typically purchase spot cargoes from December to March to meet peak heating and power demand during the northern hemisphere winter.

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

To contact the editor responsible for this story: Pratish Narayanan at pnarayanan9@bloomberg.net

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