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Asia area LNG costs flat as ample inventories weigh

Asian spot liquefied gas ( LNG) was flat this week to trend at a near threeyear low as high stocks kept costs capped, though the depression in prices has brought in some spot need.

The typical LNG rate for April shipment into north-east Asia << LNG-AS > remained at $8.30 per million British thermal systems (mmBtu), its weakest level since mid-April 2021.

There are South Asian, Southeast Asian, and Chinese buyers in the area market, however their area purchases are not anticipated to put in substantial upward pressure on rates, stated Siamak Adibi, director for gas and LNG supply analytics at consultancy FGE.

PetroVietnam Gas had actually likewise issued a tender looking for 2 spot LNG cargoes, with the first to be delivered between April 1 and April 20. The shipment window of the second cargo has yet to be determined.

Although traders continue to eye price-sensitive demand around the $8/mmBtu cost level, the region is still amply supplied, said Samuel Good, head of LNG prices at commodity prices agency Argus.

Terminal inventories (are) mostly comprehended to still be high as northeast Asia looks beyond completion of winter and to the coming summer season with its normally strong summer season cooling power need, he stated.

Temperature forecasts for the turn of seasons throughout the region have actually been modified somewhat higher over the past week, which could limit late-season heating need and help to buoy terminal stocks even more, in turn restricting summer season stock builds.

In China, a research study arm of state energy giant China National Petroleum Corp (CNPC) had forecast the nation's. natural gas need to grow 6.1% to reach 415.7 billion cubic. metres (bcm) in 2024, with imports expected to account for 43.1%. of this.

LNG imports are seen growing 8.1% to 77.11 million heaps this. year, listed below 2021's record of 78.93 million lots, in spite of a. substantial increase in LNG port getting capacity over the. last year.

In Europe, S&P Global Commodity Insights examined its daily. North West Europe LNG Marker (NWM) cost criteria for freights. delivered in April on an ex-ship (DES) basis at $7.441/ mmBtu on. Feb. 29, or a $0.49/ mmBtu discount rate to the April gas rate at the. Dutch TTF center.

Argus evaluated the price at $7.450/ mmBtu, while Spark. Products examined it at $7.401/ mmBtu.

Europe gas rates saw some gains previously this week amidst an. boost to an unplanned outage at a Norwegian gas field, however. stocks in the region remain sufficient.

February has actually experienced mild temperatures in Europe,. contributing to greater gas stocks compared to 2023. This. pattern is expected to continue through the summer if we do not see. any significant supply outage, stated FGE's Adibi.

We don't see a demand trigger in Europe, given the shift to. milder weather and the continuous pattern of weak economic. efficiency. In reality, with steady non-Russian pipeline products,. Europe LNG demand is most likely to stay controlled.

Area LNG freight rates fell even more this week to. their lowest since June 2023, stated Glow Commodities analyst. Qasim Afghan.

Atlantic rates today were estimated at $47,750/ day on. Friday, while Pacific rates were at $53,500/ day.

(source: Reuters)