Northeast Asia LNG Rises on Lower Supplies in Pacific, WGI SaysChou Hui Hong
Liquefied natural gas prices for shipment to Northeast Asia rose this week on lower supplies in the Pacific, according to Energy Intelligence Group.
Spot cargoes for delivery of the power-station fuel over the next four to eight weeks climbed to $15.40 per million British thermal units from $15.15 in the period ended June 24, the research company said on the website of its World Gas Intelligence publication. The price in Southwest Europe increased to $11.65 from last week’s $11.60, according to WGI.
LNG will gain this week as warmer summer weather in North Asia boosts demand for electricity to run air conditioners, according to four traders surveyed by Bloomberg News through June 28. Asian buyers typically pay more from June to August as power consumption climbs.
Nigeria LNG Ltd., Africa’s biggest LNG exporter, declared force majeure on exports June 28 after a week-long shipping blockade by the nation’s maritime agency on its Bonny Island loading bay. Force majeure is a contract clause that companies may invoke when they miss shipments because of circumstances beyond their control.
Supplies will probably increase as GDF Suez and Sonatrach Group are selling one cargo each while Australia’s North West Shelf LNG may put up some shipments for sale, according to the research company.