A roundup of news and commentary from NGI’s LNG Insight

  • A natural gas price rally continues overseas. European front-month prices gained for a sixth day as did contracts further down the curve, with the Title Transfer Facility trading at its highest point in over a decade. 
  • Spot prices in North Asia also gained again Thursday, assessed in the high $12/MMBtu range as global competition for LNG cargoes intensified. Smaller buyer Taiwan made a splash when state-owned CPC Corp. issued a purchase tender for 10 cargoes for August-December delivery. 
  • Prices in South America also continued climbing amid colder weather, drought and stronger demand. NGI data showed delivered ex-ship prices are above $10/MMBtu across the region.
  • The tight global market continues pushing up freight prices, said Fearnleys AS. “Although the maintenance and drydocking season is well underway, it doesn’t appear to affect the shipping market much,” the shipbroker said Wednesday. “Spot rates continue to build on the previous weeks’ gains, supported by term discussions and a strong product market due in part to warm weather across Europe and some problems with European pipeline supply.”