Asian LNG Spot Climbs as Jordan, Pakistan Buy

Posted by Michelle Howard July 24, 2015

Asian liquefied natural gas (LNG) spot prices for September delivery were higher on Friday supported by nearby demand from new importers including Jordan and Pakistan, traders said.

The price of Asian spot cargoes rose to $8.10 per million British thermal units (mmBtu), from $7.80 the previous week.

"(It's) just unexpected demand with very short lead times," said a trader.

Jordan is expected to announce results of a tender for two cargoes for delivery in early September on July 29, while Pakistan has held several tenders to buy at short notice.

Other activity which supported prices included Argentina's YPF purchasing five LNG cargoes on behalf of state-run energy firm Enarsa following its recent tender, to be supplied by Statoil, Trafigura and BP.

Traders said there was also some demand from end users in Asia, including Japan, although modest.

Japan's LNG demand has been boosted in recent years by the closure of all of its nuclear reactors for checks and costly safety upgrades after the Fukushima meltdowns of 2011.

Kyushu Electric Power is set to mark the first restart with one of its Sendai reactors in southwestern Japan in August, however, pending a final sign-off by the nuclear regulator.

Future new demand could come from Croatia after power utility HEP and gas transmission system operator Plinacro invited investors to express interest in building an LNG terminal in the northern Adriatic.