Natgas roundup: NYMEX consolidates above $3/mmBtu, global LNG holds firm

London, (Quantum Commodity Intelligence) – US natural gas prices have consolidated above $3 per million British thermal units (mmBTu) with warmer weather boosting power demand, while global LNG prices remain upbeat on summer procurement. 

NYMEX natural gas for July delivery was trading at around $3.085/mmBtu in early trade Thursday, a gain of around $0.25/mmBtu, or nearly 10%, over the last 10 days.

Global LNG prices also remained firm ahead of the expected summer demand spike, as air conditioning boosts power consumption.

Additionally, local power shortages in parts of Asia were also seen underpinning gas prices.  

"Dry weather in China has seen hydropower generation fall, as demand in the industrial province of Guangdong surges in response to rebounding economic activity and hot temperatures," commented Daniel Hynes, Senior Commodity Strategist at ANZ.

Ship tracking data from Kpler showed China imported a monthly record of 7 million mt of LNG during May, up over 10% fom April.

Physical LNG for Asia was seen pushing towards $11/mmBtu, while July futures were trading at around $10.60/mmBtu.

In Europe, benchmark TTF gas was trading above €/MWh in the first days of June, or around €9/mmBtu.

Meanwhile, Pakistan's tender for nine cargoes (140,000 cbm each) of LNG for delivery in July/August closed on June 2, and is expected to be awarded in the $10.50-$11.00/mmBtu range.