Acasă » Oil&Gas » Consumers » Stronger North Asian demand, Brexit lift Asian spot LNG prices

Stronger North Asian demand, Brexit lift Asian spot LNG prices

1 July 2016
Consumers
energynomics

Asian prices for liquefied natural gas (LNG) rose to their highest since February this week, pushed up by a rise in Asian imports and higher prices in Britain, according to Reuters.

Asian spot LNG prices LNG-AS were valued around $5.50 per million British thermal units (mmBtu) by traders, about one-third higher than their 2016 lows from April.

Traders said that prices were being supported from both the physical and the financial markets.

Financial markets were volatile this week after Britain’s vote to leave the European Union.

With the British pound falling against other currencies, UK gas prices were pushed higher across the curve. That lifted Asian spot LNG prices since international gas traders increasingly look towards Britain’s gas market for guidance as it can take in supplies from multiple sources, including continental European pipelines and overseas LNG imports.

Also, Qatar’s RasGas this week signed an agreement with France’s EDF to deliver up to 2 million tonnes per year of LNG to EDF’s new terminal in Dunkerque starting in 2017, pulling supply away from Asian markets. Prices were also supported by firm Asian demand.

Tags:

Leave a Reply

Your email address will not be published. Required fields are marked *