Asia spot LNG prices ease for second week on tepid demand, rising Hormuz transits
UNG•Asian spot LNG prices for November delivery fell to $25.25 per mmBtu from $25.85 the prior week, as tepid demand and increased shipments through the Strait of Hormuz improved supply availability.
1. Asian prices decline
The average price for November delivery into northeast Asia was estimated at $25.25 per million British thermal units, down from $25.85 per mmBtu the previous week. A market participant said demand was limited outside Southeast Asia, with China out of the market and Northeast Asia covered for now.
2. Hormuz shipments rise
More LNG cargoes from Qatar’s Ras Laffan have transited the Strait of Hormuz in recent weeks, with some vessels switching off their AIS transponders. LNG cargoes exiting the waterway in September reached their highest monthly level since the US-Israeli war on Iran began, though volumes remained significantly below pre-war levels. Increased Gulf supply weighed on South Asian spot tendering activity.
3. Regional market details
Northwest Europe November LNG benchmarks were assessed at $23.685 to $23.93 per mmBtu. European storage entered October about 71% full, while Atlantic and Pacific LNG freight rates rose to $31,500 and $38,250 a day, respectively.
