Heat wave: Consumption rises in Asia
Spot liquefied natural gas (LNG) prices in Asia rose this week to their highest levels since January. This increase was spurred by warm weather affecting the entire region, boosting demand for this super-chilled fuel, and following rising gas prices in Europe due to maintenance outages and lower wind generation.
“Prices for LNG delivered to Asia have increased in recent days thanks to demand from Southeast Asian buyers and increases in European prices over the past three days,” said Samuel Good, head of LNG pricing at Argus, a raw material pricing agency. In comments carried by Reuters, Good added that forecasts of above-average temperatures in northeast China next month could boost gas production to meet increased cooling demand in the energy sector.
In Europe, gas prices are expected to remain stable for the next week, driven by above-average temperatures and steady pipeline flows, but supported by uncertainties over renewable energy generation and reduced gas flows at Sabine Pass LNG in the United States . Ana Subasic, natural gas and LNG analyst at Kpler, a data and analytics company, suggests as much.
