Global LNG Prices Rise as Outages and Tenders Tighten Supply Balance
Asian spot liquefied natural gas (LNG) prices for June delivery rose as an unplanned outage at Australia's North West Shelf export plant hit supply and various tenders supported demand.
The price of Asian spot cargoes rose $0.10 per million British thermal units (mmBtu) from the previous week at $7.50 per mmBtu on May 15, while cargoes for July were pegged slightly higher at $7.70 per mmBtu.
Top buyers Japan and South Korea, the world's biggest by volume, kept a low profile despite an ongoing production plant outage in war-torn Yemen overlapping with a week-long output hiatus at Australia's 16.3 million tonne per annum North West Shelf export plant.
The Woodside-operated Australian plant began raising production on May 12 after a power failure disrupted operations on May 5.
On the demand side, Argentina's YPF this week purchased seven LNG cargoes from Trafigura and Spain's Gas Natural Fenosa for delivery from June through August.
Pakistan re-issued a tender to buy four cargoes for delivery July to October, instead of earlier requirements of June to August.
Traders were awaiting clarity on results for buy tenders from Jordan, India and Nigeria.
(Reporting by Oleg Vukmanovic; Editing by David Evans)
