LNG prices in Asia surged last week amid an ongoing power crisis in China. At the same time, European buyers drove up competition for LNG cargoes due to low inventories. The price of LNG cargo delivered to Northeast Asia in November averaged at about $37 per MMBtu, rising by almost 16% from a week earlier, industry sources said. December delivery prices were around $38 per MMBtu, the sources added.
Traders said Bangladesh purchased two LNG cargoes from Vitol and Gunvor for October delivery at $35.89 and $36.95 per MMBtu, respectively. An official of state-run Petrobangla said those were the highest spot prices the company had ever paid. Freight rates to ship LNG increased to their highest in multiple months last week. Meanwhile, production issues in Russia and Indonesia also underpinned prices. Traders also noted that Pakistan was considering stopping spot purchases should prices remain elevated.
