Asian LNG Prices Show Signs of Recovery

Asian LNG Prices Show Signs of RecoveryAsian LNG Prices Show Signs of Recovery

Asian spot liquefied natural gas prices for August delivery rose on the back of fresh signs of demand from Taiwan and Mexico, while Australia's Gorgon export plant expects to ship five cargoes next month.

Prices for August rose to $5.30 per million British thermal units, compared with $5.05 per mmBtu last week, Reuters reported.

British gas prices trading at the National Balancing Point hub saw an extremely volatile week following the surprise closure of a large UK storage facility and the Dutch government moving to curb output at a major gas field.

On Friday, UK gas prices rose again as the pound tumbled against the euro after Britain voted to leave the European Union.

The impact of currency fluctuations on dollar-denominated LNG deliveries to Europe is still too early to tell.

In terms of demand, Taiwan sought supply for August delivery and Mexico's state-run CFE also had provisional demand for up to five cargoes further out, trade sources said.

India's Fertiliser and Chemicals Travancore Ltd. issued a tender on Friday to import around three cargoes over the year to August 2017. In Australia, Chevron's newly-built Gorgon export facility expects to ship five cargoes after resuming production following a lengthy shutdown that began in April.

The first export will be on July 1 aboard the Marib Spirit tanker, following by four more cargoes shipping on July 9, 16, 19 and 28, according to a notice on the Chevron Australia website.