By Jessica Jaganathan
SINGAPORE (Reuters) – Asian spot liquefied natural gas (LNG) prices jumped to a multi-month high earlier this week, although they eased slightly towards the end of the week on expectations of more supply from the United States.
The average LNG price for October delivery into northeast Asia was estimated at about $4.10 per million British thermal units (mmBtu) this week, up 40 cents from the previous week, but down about 10 to 20 cents from earlier this week.
Prices for cargoes to be delivered in September were estimated at about $3.90 to $4 per mmBtu, several traders said.
“Expectations of more cargoes from the U.S. as well as news that the maintenance at Gorgon will not be as extensive as initially thought will weigh on prices,” a Singapore-based LNG trader said.
Chevron Corp plans to shut Train 1 at its Gorgon LNG plant in Australia in early October and Train 3 in January 2021 for inspections on key equipment in the processing units, Western Australia’s industrial regulator said. [L4N2FN1VM]
Its train 2 is expected to restart production in early September after maintenance was extended for two months.
Meanwhile, buyers are expected to cancel up to 10 LNG cargoes for October loading from the United States, the lowest number in months as prices in Asia and Europe recover, several trade sources said.
In tenders, Russia’s Sakhalin LNG plant likely sold a Sept. 28 loading cargo at about $4 to $4.20 per mmBtu, while Kufpec could have sold a Wheatstone cargo at about $4 to Chevron on a free-on-board basis, traders said.
Gail India offered a cargo for October loading while Exxon and Woodside Petroleum offered cargoes for September and October, traders said.
Indonesia’s Pertamina likely awarded two cargoes at a slight premium to Henry Hub prices, while APLNG partially awarded its three cargo tender at a premium to North Asia prices, traders said.
(Reporting by Jessica Jaganathan; Editing by Amy Caren Daniel)
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