Asian spot LNG prices fell to $31.40 per mmBtu for December delivery in the week to November 6, from $32.50 the prior week, but remained near a four-year high. Tight winter supply and competition with Europe continued to support prices.
The average price for December delivery into northeast Asia was estimated at $31.40 per million British thermal units in the week to November 6, down from $32.50 the previous week, which was the highest since mid-December 2022. Market participants said disrupted Middle Eastern supply and weaker European storage were increasing competition for flexible cargoes.
Lower Asian demand and increased LNG flows through the Strait of Hormuz have made Europe a more attractive destination for cargoes. Dutch TTF benchmark gas prices were around €86 per megawatt hour on Friday, nearly 17% below last week's €104/MWh, while European storage was 74% full, below the seasonal average.
Prices are expected to rise slightly next week, supported by stronger Indian gas-for-power demand, declining Japanese utility inventories, coal outages and potential winter restocking. Asian demand could be capped by China's stable coastal inventories, secured Bangladeshi supplies and limited Pakistani spot demand. Atlantic LNG freight rates rose to $55,250 a day and Pacific rates to $32,750 a day.
