News wire — The average liquefied natural gas, LNG, price for November delivery into north-east Asia rose 7.4% to $14.5 per million British thermal unit, MmBtu, last week, according to estimates by industry sources.
The price for December delivery was estimated at $17.5/MmBtu, the sources said.
Also, Asian spot LNG prices climbed $1 during the week despite muted demand, tracking European gas prices, on concerns over tensions in the Middle East and damage to the Balticconnector gas pipeline linking Estonia and Finland.
“Markets are having a strong response based on sentiment, while structurally both basins are well supplied somewhat as we move into a milder winter season,” said Toby Copson, head of energy, APAC, at commodities broker Marex.
“The market is pricing in potential bottlenecks and flows being hampered by the conflict in the Middle East and recent damage to a euro pipeline,” Copson added.
Northeast Asia’s demand remains limited as the region still enjoys high inventories throughout, said Auguste Breteau, deputy head of LNG pricing at commodity pricing agency Argus.
Asian importers have withdrawn their demand since the strikes in Australia ended, and demand has not returned even with strikes potentially being revived from next week, he added.
Negotiations over a pay and conditions deal between Chevron and unions at its LNG facilities in Australia made progress again on Friday, but fell short of sealing a deal to end months of labour disputes.