Prices for liquefied natural gas (LNG) in Asia rose this week as persistently cold weather in North Asia forced buyers to enter the spot market to replenish inventory.
Spot prices for March LSG-AS delivery in Asia climbed 40 cents to $10.60 per million British thermal units (mmBtu) this week, Reuters reported on Friday citing LNG traders.
Cargoes for delivery in the first half of March are trading between $10.70 and $11 per mmBtu while cargoes for the second half of the month are trading at just above $10 a barrel, the report said.
Japan and China, the world’s first and second largest LNG importer, have been increasing purchases of the fuel lately due to cold weather.
Japanese imports of LNG reportedly hit their highest in at least five years to some 8.7 million tonnes last month, up 8 percent from December.
According to the report, China’s imports of LNG in January rose to another record high of 5.14 million tonnes.
Chinese LNG imports are expected to continue to rise as the country is pursuing its plan to cut addiction to coal to reduce pollution.
The country’s imports of LNG surged 46 percent to 38.13 million tonnes in 2017.
LNG World News Staff