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MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
LNG
Healthy LNG inventories in Japan and Korea – key buyers in Asia – are likely to cap spot demand for LNG cargoes this winter.
- LNG stockpiles held by major Japanese power utilities decreased by 1.36% to 2.18 million tons on Oct. 29 according to trade ministry data after four consecutive weeks of growth amid exceptionally weak power demand.
- South Korea’s liquefied natural gas demand this winter is likely to decline by 1.5 m mt on the year to 24.9m mt, according to BNEF. South Korea’s requirement for flexible LNG or spot cargoes will fall 42% compared to last winter to 3.8m mt.
- The falling LNG demand in South Korea is a result of record high inventory levels and higher nuclear and coal power generation.
- A weaker spot appetite in the region is expected to put pressure on JKM prices, which have seen a recent rise amid the risk premium due to the Israel-Hamas conflict. Spot JKM has fallen below $17/MMBtu due to strong inventory levels and weaker demand, according to Bloomberg.
- China’s domestic LNG prices are expected to keep momentum in November, amid rising feedgas costs, higher expectations for imported LNG prices, and rising downstream demand, according to OilChem.
- Shell has continued its recent interest in spot cargoes to China, buying a DES Tianjin spot cargo from SEFE Nov. 1 via the Platts MOC for $16/mmbtu. The delivery window is Cargo is Dec. 16-18.
- There were several tenders offered in Asia, with India’s Gail offering a swap tender for US loading in January and delivery into Dabhol terminal Jan. 3-12. Bangladesh was also looking for a spot cargo in December.
- PNG’s export plant also offered a cargo via tender for December delivery into Asia.
- Although netbacks from the US continue to favour pulling cargoes to Asia, shipping constraints and congestion at the Panama Canal will likely keep US cargoes headed to Europe.
Source: Bloomberg
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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