Asia LNG Spot Prices Little Changed for Third Week, WGI Says

Liquefied natural gas prices for Northeast Asia were unchanged for a third week before the year-end holidays, 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. Southwest Europe prices increased to $14.30, up from $14.

Spot LNG at $19 per million Btu is at parity with oil, leading Chinese and South Korean buyers to delay purchases, according to WGI. Prices for long-term contracts, generally more than 10 years, are typically linked to the cost of Brent crude or the so-called Japan Crude Cocktail.

Japanese utilities are seeking two spot shipments for January and six for February, WGI said. Buyers from Japan, India and South Korea are looking for as many as eight shipments delivered between January to March, Bloomberg reported earlier.

Prices are forecast to be little changed this week, according to three traders surveyed by Bloomberg News through Dec. 12. 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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