Report: Asian LNG prices rise above $8/mmBtu

For Illustration only (Image courtesy of JERA)
For Illustration only (Image courtesy of JERA)

Prices for liquefied natural gas (LNG) have increased to their highest since mid-2015 in Asia, boosted by plans by OPEC and Russia to cut crude oil production.

Spot prices for Asian LNG increased 50 cents from last week to around US$8.1 per million British thermal units (mmBtu), Reuters reported on Thursday.

The news agency cited traders as saying that the main drivers behind the rise in prices were a deal between the Organization of the Petroleum Exporting Countries (OPEC) and non-OPEC producer Russia to slash crude output to pump up prices, as well as cold weather in northern Asia and Europe that lifted LNG demand for heating and power generation use.

To remind, these factors also boosted last week’s prices to their highest in 2016 at that time.

“Higher oil prices will translate into higher LNG import prices for the majority of LNG consumers,” consultancy Wood Mackenzie said in a report on the impact of the OPEC deal on the LNG markets on Thursday.

“Currently, around 80% of LNG supply is sold on contracts that price LNG as a function of oil. But indexation varies widely. For every $1/bbl increase Brent, expect a $0.07- $0.15/mmbtu increase in oil-indexed LNG contract prices,” Wood Mackenzie said.

 

LNG World News Staff

Share this article

Follow LNG World News

Events>

<< Oct 2017 >>
MTWTFSS
25 26 27 28 29 30 1
2 3 4 5 6 7 8
9 10 11 12 13 14 15
16 17 18 19 20 21 22
23 24 25 26 27 28 29
30 31 1 2 3 4 5

CWC World LNG Summit & Awards Evening

The CWC World LNG Summit & Awards Evening is recognised as the premier end of year gathering for the global LNG industry.

read more >

LNG Pricing, Trading & Risk Management – 3-Day Course

This three-day training program provides a unique opportunity to learn and apply the practical skills, knowledge and tools…

read more >

LNG BUNKERING MED

The only 3 day course offering theoretical and practical training on LNG bunkering for the Mediterranean market, the syllabus is accredited…

read more >

EAGC 2017

EAGC 2017 sees a new format that combines the conference programme with targeted networking…

read more >