On March 5, prices of Asian spot liquefied natural gas hiked up this week as per reports. This is because supply for cargoes for delivery in the month of April tightened.
Moreover, spot purchases from Chinese and Indian buyers fostered the prices even though ample supply curbed gains.
Further, the average LNG price for April delivery into northeast Asia is worth $5.70per million British thermal units. However, it surged 10 cents higher from the previous week.
Meanwhile, prices for cargoes for delivery in the month of May are worth $5.80 per million British thermal units.
Low spot prices were also attracting buying interest from South Korean and Indian firms.
PetroChina declared force majeure on natural gas imports including piped gas and LNG.
Also, PetroChina meets 40% of its total gas needs through imports according to statistics. In fact, 70 percent of it’s imports are through piped gas from central Asia, Myanmar and Russia.
The remaining 30 percent of it’s imports are through LNG.
India’s Gujarat State Petroleum Corp selected two cargoes for delivery over late March and early April through two separate tenders.
It is also looking for one cargo a month for delivery over May until April next year.
Moving forward, Guangzhou Gas purchased a cargo for April 5-11 delivery into Dapeng.
This is at an estimated value of $5.60 to $5.80 per million British thermal units.
Besides this, China Gas too purchased a cargo for April 9-15 delivery into Dalian. It is however at an estimated value of $5.50 to $5.70 per British thermal units.
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