Asian spot liquefied natural gas (LNG) prices experienced a slight increase this week in response to production outages across Asia and Europe. However, overall demand remains low, keeping prices near one-year lows. The average LNG price for June delivery to northeast Asia was reported at $11.80 per million British thermal units (mmBtu), a modest rise from $11.50/mmBtu the previous week—the lowest prices seen since mid-May.
Interest in prompt cargoes remains limited. Importers from China and India have been less active due to current prices exceeding $11.00/mmBtu, according to Martin Senior, head of LNG pricing at Argus. In contrast, South Korea has emerged as the main spot buyer in the region.
Strong demand from South Korea, aided by stocks at state-owned Kogas being around 20 percent full, has spurred purchasing interest from Kogas and other key players such as Komipo, Kospo, and Prism. Notably, current spot prices are below Kogas’ domestic tariff, making cargo purchases profitable for private importers. On the supply side, the situation looks stable despite recent outages like the one at Petronas’ Bintulu LNG complex.
Equinor’s Hammerfest terminal in Europe, the largest LNG export facility, is offline for planned maintenance until July 19. Meanwhile, U.S. exports from Venture Global’s Plaquemines plant have reached one million tons per month, and BP has loaded its first cargo from the Greater Tortue Ahmeyim project between Mauritania and Senegal. The anticipated startup of LNG Canada and increased supply from Corpus Christi also offer optimistic forecasts for supply stability.
In Europe, S&P Global Commodity Insights pegged the daily North West Europe LNG Marker price for June deliveries at $10.49/mmBtu. This represents a discount to the June gas price at the Dutch TTF hub. Despite seasonal declines in gas demand, concerns regarding summer storage injections persist due to inadequate winter premiums for incentivizing full injections.
Additionally, Europe’s ongoing phaseout of Russian fuel raises questions about future pipeline supplies, further steering buyers toward seaborne imports. In freight dynamics, Atlantic shipping rates have increased to $35,750 per day, while Pacific rates have decreased to $22,250 per day. Following earlier trends, the U.S. front month arbitrage to northeast Asia has closed, now slightly favoring Europe.