LNG: Limited Price Upside From Opportunistic China Spot LNG Interest

LNG demand for spot cargoes has picked up from second-tier gas companies since late last week but is likely to remain opportunistic according to Argus. The increased buying interest comes as spot prices have fallen below 9$/mmbtu.

• Price upside is likely to be limited despite the renewed interest in spot supplies with limited demand from other northeast Asian buyers due to higher than usual LNG inventories and ample supply availability in the Pacific basin.
• The buying interest breaks a long pause since 2021 as imported LNG prices are more competitively prices than other sources of gas such as trucked LNG.
• China Gas, Chinese firm Jovo and Hong Kong based Towngas may have bought cargoes for July delivery at potentially around 9-9.3$/mmbtu or just below according to Argus sources. Shenzhen Gas and Shenzhen Energy have also seen to be interested in August delivery cargoes.