Europe Outbids Asia for LNG as Prices Surge 150%
Macron Calls for Another Emergency Oil Release as Europe Loses Supply Singapore, Malaysia, Thailand and Indonesia… What I Cover Irina Slav has been writing about global energy markets since 2007, covering the oil and gas industry, energy security, commodities, and the… Liquefied natural gas prices on the spot market are moving higher as demand picks up seasonally and Asian importers are souring on the fuel.
European buyers are stepping up purchases, however, despite the price.
Asian demand for liquefied gas is set to decline this month—and over the year—according toanalysts.
September flows of LNG into Asian countries are estimated at 20.09 million tons by Kpler, which would be down from 22.27 million tons a year ago, and 22.25 million tons a month ago, Reuters’ Clyde Russell reported this week.
At the same time, European LNG imports are on track to increase this month, to 7.98 million tons, rising further to as much as 10.53 million tons in October, as the level of natural gas in storage across the European Union remains substantially below the five-year average for this time of the year.
LNG was trading at $26 per million British thermal units in the week to September 11 and is unlikely to decline anytime soon.
Qatar’s LNG export hub remains largely closed for business, with QatarEnergyreportedto be seeking deals for U.S.
liquefied gas to 2031 to make up for lost local supply in long-term contracts with international clients.
The UAE is getting some liquefied gas out of the Persian Gulf but it is not enough to cover the loss of Qatari gas.Related: The Oil Market’s Backup Plan Is Breaking Down The shortfall in LNG supply resulting from Qatar’s force majeure was estimated at some 12.8 million tons annually by the country’s energy minister earlier this year.
capacity coming on stream soon, but “soon” does not mean “next week,” and this is a problem for gas importers ahead of winter.
So, Asia and Europe are again locked in a race for a limited amount of supply.
As in previous years, Europe is having to pay a hefty premium to draw cargoes from Asia.
| Product | Price | Change |
|---|---|---|
| Brent Crude | $102.14/bbl | +0.34% |
| WTI Crude | $96.90/bbl | +0.21% |
| EN590 Diesel | $846/MT | +0.18% |
| Jet Fuel A-1 | $1090/MT | +0.55% |
| Mazut M100 | $450/MT | -0.15% |
| Bitumen 60/70 | $470/MT | +0.08% |
| Sulphur Gran 99.5% | $470/MT | -0.44% |
| Urea 46% Gran | $650/MT | +1.12% |
| NPK 16-16-16 | $460/MT | -0.28% |
| Nat Gas TTF | $15.42/MMBtu | +0.92% |
Comments
Post a Comment