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Asia spot LNG prices fall for first time in over 2 months

Asian area melted natural gas (LNG) rates dropped a little for the first time in more than 2 months this week over expectations of weak demand, amid relieving issues around supply due to stress in the Middle East.

The typical LNG cost for June shipment into north-east Asia << LNG-AS > rose to $10.20 per million British thermal units ( mmBtu), falling off the over three month-highs it struck last week, industry sources approximated.

Asia LNG prices, which scaled a 15-week high this month, have either been mainly flat or increased week-over-week because March. The rally in LNG prices has curbed Asian buyers' demand for spot cargoes, industry officials state.

The prospect of a runaway escalation (in Middle East tensions) appears to have receded but has actually not disappeared, as have the TTF and Asian spot costs, Rystad Energy experts said in a note on Friday.

Rystad stated the delay in restarting Japan's 1.1 gigawatts ( GW) Higashidori atomic power plant might drive need for replacement fuels including gas. In spite of China's factory activity in March growing for the first time considering that September, general downstream gas demand stayed weak, the analysts stated.

Despite some bullish signals towards the northern summer, the advantage threat stays capped due to weak need in price-making areas, Rystad said.

The marketplaces mainly brushed off a gas leak at Norway's. Hammerfest terminal this week, which took place during a brief. duration of planned upkeep, said Samuel Good, head of LNG. rates at commodity prices agency Argus.

LNG provided rates in Europe and northeast Asia have. fallen back from their recent rally, with losses in both markets. mainly underpinned by weaker European gas center costs as. expectations for heating demand in the region waned, Good stated.

S&P Global Commodity Insights evaluated its daily North West. Europe LNG Marker (NWM) price benchmark for cargoes provided in. June on an ex-ship (DES) basis at $9.252/ mmBtu on April 25, a. $ 0.15/ mmBtu discount rate to the gas rate at the Dutch TTF hub.

Atlantic LNG rates have seen support from supply concerns,. including a current journey to Freeport LNG's Train 3 liquefaction. unit on April 23, stated Margaret Rogers, senior editor at S&P. Worldwide Product Insights.

Subdued feedgas volumes in the U.S. coupled with. upkeep in Norway and cooler temperature levels in Europe have. kept costs raised in the region, with EU natural gas storages. seeing net withdrawals for two consecutive days, Rogers. said.

Argus examined the June shipment cost at $9.2/ mmBtu.

(source: Reuters)