(TheIndoDaily) – The Asian liquefied natural gas (LNG) prices fell this week, driven by softer downstream demand. The fall is expected to prompt buying opportunities for some Asian importers, analysts say.
“Asian LNG prices fell this week, prompting opportunistic buying from some Asian importers. The drop was driven by softer downstream demand, though supply disruptions in Australia and Brunei slowed further drops in prices,” Masanori Odaka, a senior analyst with Rystad Energy, said in a market update on Tuesday (16/04).
“While some Asian importers moved quickly to lock in lower prices, others remained cautious amid market uncertainty, partly fueled by renewed concerns over trade tensions, as well as comfortable storage levels,” he said.
Asian LNG prices for May settled at approximately $12.5 per MMBtu, down 8.7% from April 2025 but 29% higher than in May 2024.
While, LNG derivatives prices for June fell 2% week-on-week on 15 April to $11.4 per million British thermal unit (MMBtu), while Dutch Title Transfer Facility (TTF) June prices dropped 2.4% to $11.4 per MMBtu, Rystad Energy said in a note.
Asian Importers
Rystad said some importers, such as Korea Gas Corporation (Kogas), a Chinese importer unaffiliated with a national oil company, and CPC Corporation, bought May-June cargoes at or below $11 per MMBtu.
Kogas is also seeking additional volume for June 2025-March 2026 delivery, it said.
The gas research agency added Bangladesh’s Rupantarita Prakritik Gas Company Ltd (RPGCL) bought cargoes for 15-16 May and 25-26 May delivery, while India’s Gujarat State Petroleum Corporation (GSPC) was seeking a cargo for 10-31 May delivery.
In terms of regional supply disruptions, Brunei LNG, operated by a joint venture between the Brunei government, UK supermajor Shell, and Japan’s Mitsubishi, experienced an outage on 11 April.
Meanwhile, the Inpex-operated Ichthys LNG project in Australia also faces disruptions, with loading schedules for multiple cargoes delayed by one day. Inpex is currently seeking a replacement cargo for 17 May delivery, with offers due by 16 April, Rystad added.
“Mild weather forecasts in the shoulder-month period will likely limit gas consumption in East Asian countries for the remainder of April,” Odaka said.
As for Japan, power prices in Japan for 17 April have fallen by about 40% week-on-week.
Japan has significant planned maintenance scheduled for all fuel types, reducing available capacity by 18% for April and 15% for May compared to March 2025, he said.
By Staff Writer