10655
Global LNG-Asia at Discount to Europe
Energy

Global LNG-Asia at Discount to Europe

Asian spot liquefied natural gas prices slipped to trade at a discount to European prices for the first time since 2011, as weak demand weighed, traders said on Friday.
The price of spot LNG for March delivery fell to $6.90 per million British thermal units (mmBtu) on Friday from $7.20 last week, while UK natural gas prices were just above $7.00, according to Reuters.  European gas has not traded at a premium since the Fukushima nuclear crisis caused a spike in Asian demand in 2011. Some traders believe the premium may not hold, however, as European prices would come under pressure at the end of winter.
The European Commission helped negotiate a winter gas deal package after Russia cut supplies to Ukraine in mid-June, but Ukraine will need a new price agreement with Gazprom from April 1, when the current deal expires.
Europe relies on Russia for about a third of its gas, almost half of which is piped via Ukraine. Traders said weak demand and low prices could trigger some suppliers to move maintenance plans forward in a bid to support the market. There is a risk that this could push the supply glut further out though. “If prices are low and there’s an oversupply, shareholders will push plants to advance any maintenance plans, but I don’t think they should push it too much because there’s a lot of new supply coming on later on in the year and next year, so pushing forward maintenance is not necessarily a good idea,” said one trader.

 

Short URL : http://goo.gl/UDlshJ

You can also read ...

The OGCI initiative is now made up of BP, Chevron, CNPC, Eni, Equinor, ExxonMobil, Occidental, Pemex, Petrobras, Repsol, Saudi Aramco, Shell and Total.
ExxonMobil, Chevron and Occidental Petroleum are joining the...
New Delhi Will Pay for Iranian Oil in Rupees
India may revert to paying Iran in rupees for the oil it buys...
Zanganeh to Veto OPEC Decisions Against Iran
Oil Minister Bijan Namdar Zanganeh on Thursday said he would...
Iraq Crude Exports From South Nearing Record High
Crude oil exports from southern Iraq are close to a record...
US Wants Lower Oil Prices  for Protecting Arab States
US President Donald Trump on Thursday demanded OPEC lower...
MAPNA to  Build Petrochem,  Power Plant in Parsian SEZ
Iran's top engineering and energy enterprise MAPNA Group is...
US Oil Sanctions to Harm Int'l Economy
Imposing sanctions against oil producing states like Iran will...

Trending

Googleplus