Asian LNG Dips From Three-Year High as Traders Weigh Hormuz Plan

g7c)4hwbapehpc5]}z4setxn_media_dl_1.png S&P Global EnergyArticle content(Bloomberg) — Asian liquefied natural gas prices pulled back slightly from the highest level in three years, as the market weighed the viability of an American plan to ensure safe passage for tankers through the Strait of Hormuz.Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentSpot LNG eased to around $23.80 per million British thermal units in Asia, said traders, but levels were still more than double compared with last week. The sharpest rally in European natural gas in four years came to an abrupt halt on Wednesday after President Donald Trump flagged the safe transit plan.Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article contentArticle contentNatural gas prices jumped this week following a halt at Qatar’s Ras Laffan plant — the world’s biggest LNG export facility — and the effective closure of Hormuz, which is threatening the worst supply shock since Russia invaded Ukraine in 2022. Buyers in Asia are scrambling for alternative supply, with the disruption already impacting some industries and signaling higher electricity prices. Article contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article contentSome LNG tankers have redirected toward Asia after initially heading for Europe, as competition intensifies. Still, prices are too high for some buyers, especially India, traders said. Instead, those importers are opting for short-term supply cuts to industries, rather than taking expensive cargoes, they added.Article contentQatar’s halt especially affects Asia, with most of its production shipped to the region, and a prolonged halt is likely to increase competition with Europe for cargoes from other destinations, keeping prices high.Article contentMore News: Article contentPTT seeks to purchase at least one LNG cargo on a DES basis for late-March to early-April delivery to ThailandIndia’s Gujarat State Petroleum Corp. bought a cargo on a DES basis for April deliveryConstruction at Abu Dhabi National Oil Co.’s Ruwais LNG export facility is on track, CEO Sultan Al Jaber told reporters in Tokyo on ThursdayGAIL India’s long-term supplier of LNG, Petronet LNG, has stopped deliveries under long-term contracts after issuing a force majeure notice citing shipping constraintsTaiwan has secured LNG supplies for April from regions outside the Middle EastA Russian LNG tanker sanctioned by the US halted its journey in the Mediterranean Sea after a nearby ship was allegedly attacked by Ukrainian drone boatsAt least three LNG tankers diverted toward Asia from their course toward Europe as Middle East turmoil spurs competition for the fuel, while freight rates set fresh records and add to market volatilityArticle contentArticle contentDrivers:Article contentEuropean natural gas prices resumed their sharpest rally in years as uncertainty around the war in the Middle East continues to rattle energy marketsChina’s 30-day moving average for LNG imports on Mar. 4 was 99k tons, 32% lower than a year ago, according to ship-tracking dataEuropean gas storage levels were ~30% full on Mar. 3, compared with the five-year seasonal average of ~45%Europe’s 30-day moving average for LNG imports was 279k tons/day on March 4, 49% higher than the five-year seasonal average, according to ship-tracking dataEstimated flows to all US export terminals were ~19.1 bcf/day on Mar. 4, down 2.5% w/w: BNEFArticle contentBuy tender:Article contentSell tender:Article content—With assistance from Stephen Stapczynski.Article contentTrending Bank of Canada governor warns of growing risks to financial stability Economy Posthaste: This dormant pipeline needs to be restarted for the sake of Canada, economists say News Legal fight over propane terminal clouds Canada's energy export push Energy US Sinking of Iranian Warship Piles Pressure on India's Modi PMN Business Housing affordability improves yet again, though not for the right reasons Real Estate Share this article in your social networkCommentsYou must be logged in to join the discussion or read more comments.Create an AccountSign in Join the Conversation Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information. Bank of Canada governor warns of growing risks to financial stability Economy Posthaste: This dormant pipeline needs to be restarted for the sake of Canada, economists say News Legal fight over propane terminal clouds Canada's energy export push Energy US Sinking of Iranian Warship Piles Pressure on India's Modi PMN Business Housing affordability improves yet again, though not for the right reasons Real Estate