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China Could Buy Cargoes as Asia LNG Prices Fall

LNG

Chinese LNG buyers have begun enquiring for December-January spot deliveries as LNG spot prices continue to retreat according to Argus.

  • National oil companies are currently seeking December or January spot cargoes due to softening prices.
  • The spot LNG price to northeast Asia was over 60% down from the August high to 26.855$/mmbtu on Oct 13 according to Argus data.
  • The requirement to secure supplies for the upcoming winter heating season could push buyers to look more closely at spot cargoes. There are currently no shortages in China due to strong pipeline gas supplies so any extra gas would be to restock storage.

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