Spot prices of liquefied natural gas (LNG) in Asia rose nearly 9% this week from a week ago, as demand from the region's major importers continued to rebound before the winter.
It is estimated that the average price of LNG delivered to lng-as in Northeast Asia in December was about $7.50 per million British thermal units (mmbtu), up 60 cents from the previous week.
Asian spot LNG prices have risen more than 40% since the beginning of the month due to strong demand and production problems.
BP, the oil giant, shipped liquefied natural gas to vidol this week for Northeast Asia in December at $7.65 per million BTU, according to S & P global Platts.
China's gas demand is likely to grow by about 10% this winter, up from 0.3% last winter, the state-owned oil giant said this week as strong economic recovery from the coronavirus crisis spurred demand for residents and industry.
Bernstein and South Korea's demand for LNG in the winter will be lower than usual, Bernstein said.
"Prices are likely to rise due to the possibility of cold winters in the future, but further downtime due to covid-19 seems to be the real risk."
The rising freight rate has reached the highest level in a year, which also promotes the development of LNG market.
In terms of buying direction, Bangladesh's state-owned oil supplier, rupantarita prakritik, is looking for two LNG cargoes, while China's Guangzhou Gas Company is looking for deliveries in December, traders said.
Japanese jera may have purchased the goods delivered in late December for $7.20/mmbtu, while Papua New Guinea's tender will pay $7.40/mmbtu, traders said.
In Europe, equinor's melkoeya LNG plant in Norway is likely to close until October 2021, due to extensive maintenance following a fire last month, the company said.