Asian spot LNG prices home in on $10 mmBTU, 4-month high

London (Quantum Commodity Intelligence) – Spot prices for liquefied natural gas (LNG) rallied to the highest levels since January, as stockpiling in Europe and Asia ahead of the peak-demand summer season lifted demand, according to sources and media reports Friday.

June delivery cargoes into Asia were quoted close to $10 per million British thermal units (MMBtu), around $1/mmBTU up from late-April levels.

The market has shrugged off reports of cargoes diverted away from India last week, with the surge in coronavirus cases in India cutting demand for gas as industrial activity slows down.

At least six diverted cargoes were said to have found alternative outlets in Europe and Asia, according to vessel trackers, including Kpler.

Securing LNG supplies ahead of peak demand periods of the year has become a major consideration for buyers, after last winter's record volatility and spot prices which followed the sustained cold snap across North Asia in January.

JKM had been trading at below $5/MMbtu in Q4 2020, but the demand surge saw prices rally to record levels, including a cargo trading at an all-time high of around $39/MMBtu in mid-January.