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Asia LNG Imports Rebound as Regional Spot Prices Climb, Vortexa Says

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Asia's liquefied natural gas imports rebounded last week, led by stronger deliveries to China ahead of the Golden Week holiday, while rising spot prices curbed demand in South Asia, Vortexa said in a Tuesday note.

Total Asian arrivals rose to 5.5 million metric tons across 88 cargoes, more than 10% above the four-week average. China received 1.9 million tons, its highest volume since July, while South Korea's imports reached a one-month high. Japan's arrivals fell to their lowest since July, although inventories held by major power producers remained more than 20% above the five-year September average.

Regional spot LNG prices climbed to an average of $28.60 per million British thermal units, weighing on price-sensitive buyers in India, where imports were nearly 15% below the four-week average. Pakistan received no cargoes during the week but is due to take a Qatar-origin shipment shortly.

Europe's LNG arrivals were steady at 1.9 million tons across 32 cargoes, with French imports recovering after strikes affecting the Dunkirk terminal ended. European gas storage was 70% full, 16 percentage points below the five-year average. The price spread between Northeast Asian and Northwest European LNG widened to $2.20/MMBtu, reopening opportunities for flexible Atlantic cargoes to move toward Asia.

Three LNG carriers made confirmed outbound transits of the Strait of Hormuz, including two Qatar-origin cargoes. Qatar loaded four cargoes at Ras Laffan and delivered two Qatar-origin shipments to Kuwait. Meanwhile, US LNG exports edged up to 2.5 million tons despite planned maintenance at the Cameron and Cove Point terminals.

What else is happening in Commodities?

Commodities

US Power Update: Prices Show Wide Regional Swings, With PJM Above $500/MWh

US electricity markets saw wide price swings, with locational marginal prices varying sharply across regions as power demand shifted.The Independent Electricity System Operator led the markets at 5 p.m. ET with a locational marginal price of $36.47 per megawatt-hour, compared with $30/MWh for the Independent System Operator of New England, which posted the lowest price at that hour.For intraday peaks, PJM Interconnection reached $518.41/MWh at 1:35 p.m. ET, while the IESO recorded the lowest locational marginal price at $0/MWh at 2:45 a.m. ET.The National Weather Service's Climate Prediction Center forecasts above-normal temperatures across most of the US from Sept. 29-Oct. 5, with near-normal readings in some areas of the West.

Commodities

Natural Gas Update: US Futures Fall on European Decline

US natural gas prices fell to a one-week low on Monday, pressured by a sharp decline in European gas prices, while forecasts for hotter US weather helped limit the losses.In US trading, both the front-month Henry Hub contract and the continuous contract fell by 2.85% to $2.829 per million British thermal units.In Europe, the front-month Dutch TTF gas futures contract dropped 7.417% to 73.620 euros ($84.40) per megawatt-hour, while British NBP futures declined 7.469% to 183.36 pence ($2.45) per therm.Losses in US gas prices were tempered by forecasts for hotter weather that could boost demand from power generators for air conditioning, Barchart said. The Commodity Weather Group said on Monday that forecasts had shifted hotter, with above-average temperatures expected across the US Gulf Coast through Sept. 30.US gas production remained robust, while inventories were above historical averages, limiting the potential for a sharper price rally. In Europe, gas prices fell after details of Germany's latest gas storage tenders indicated that the volumes sought would be lower than initially expected.

Commodities

Market Chatter: Meta's Alberta Data Center Boosts Province's Appeal to US Hyperscalers, Capital Power Says

Capital Power CEO Avik Dey said Meta's (META) planned CA$13 billion ($9 billion) Alberta data center has boosted the province's appeal to hyperscalers, who view the project as a vote of confidence in the government's artificial intelligence strategy, Reuters reported on Monday.Dey reportedly said the company is in talks with several firms seeking electricity for potential projects and expects other US hyperscalers to follow Meta.More than 100 data centers have been proposed in Alberta, which offers abundant natural gas, available land and a cold climate. Capital Power will initially supply 250 megawatts of electricity to Meta's site.Capital Power did not immediately respond to a request for comment from.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

$META