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Global Markets: LNG Buyers in Asia Look to Resell Supply
North Asia’s top liquefied natural gas buyers are looking to resell shipments due in part to high inventories, a move that is bound to push spot prices lower.
Chinese importers, including PetroChina Co., are offering to sell LNG shipments for December delivery, according to traders with knowledge of the matter. That’s on top of Chinese firms already reselling at least five shipments for November, the traders added.
Some Japanese importers are also offering shipments. That’s partly to optimize portfolios, according to traders, and as LNG inventories held by power companies have risen to the highest level since May.
The moves indicate that Asia is well situated for winter, and likely won’t aggressively compete with Europe for gas shipments. The market has been on edge as the possibility of colder weather or disruptions threaten to tighten global supply.
North Asia spot LNG prices for December are currently around $16.5 per million British thermal units, which is too high for Chinese firms to import and sell into the cheaper domestic market, traders added.