LNG-Asian spot prices rise on air-conditioning demand
Asian spot prices for LNG increased on firm demand for the power generation fuel, as a warmer than usual summer in different parts of the world boosted electricity usage for air-conditioning.
The average LNG price for August delivery into Northeast Asiawas estimated at about $12.50 per million British thermal units (mmBtu), up $0.80 from the previous week, industry sources said.
Temperatures in Beijing, Tokyo, Seoul, and Shanghai are expected to be higher than average over the next two weeks, weather data from Refinitiv Eikon showed, which could reduce inventories and increase gas demand for cooling.
In the United States, forecasts for hotter weather over the next two weeks also helped push natural gas futures to a 29-month high, at a time of smaller-than-expected storage build and rising exports.
Europe gas storage is below the average of the past five years, increasing demand for restocking.
"You have more air-conditioning use and low stocks pushing prices up," one London-based trader said.
Disruptions on the supply side also kept the market tight. Russian producer Sakhalin Energy said it plans to stop output for around a month starting in July to carry out maintenance.
Petronas sold a cargo from PFLNG Dua for delivery in August for around mid-$12.
