Asian spot LNG prices ended the week higher at $14.80/MMBtu due to steady spot demand for September delivery cargoes and moderately tight supply in the region.
Platts' September LNG Japan Korean Marker started the week at $14.50/MMBtu.
Demand for September shipments was carried over from last week, with buying interest still being heard from Japan's Kansai Electric and Kyushu Electric, China's CNOOC and PetroChina and India, totaling around seven cargoes. Taiwan's CPC and South Korea's GS Caltex could also have spot requirement for September delivery cargoes.
Sources said that LNG demand in Japan was still stable but added that the weather was milder compared with previous weeks.
Most regions in Japan are likely to experience average temperatures over July 30-August 29, the Japan Meteorological Agency said Friday in its weekly forecast.
"Some utilities still have immediate demand. Western Japanese buyers are still looking to buy," a North Asian utility source said.
"Kansai Electric and Kyushu Electric have given up starting their [nuclear] reactors this summer, so they have [spot] summer demand," a trader said. He added that the two companies have started procuring cargoes for September delivery, and each of them could be looking to secure one to two cargoes for the period.
PetroChina could be looking for cargoes after starting operations in late May at the company's Rudong LNG terminal in eastern China, a seller said.
Supplies available for September delivery could be squeezed as some North Asian importers have recently secured cargoes for the period.
Tokyo Electric Power secured a early September cargo at less than $14.50/MMBtu around last week, according to the North Asian utility source.
The source added that his company bought an early September cargo at a "competitive price" of less than $14.75/MMBtu recently as well.
Two September cargoes have also been snapped up by Indian buyers around the $13s/MMBtu over the past two weeks, leaving North Asian buyers to bid for dearer cargoes in the period.
A South Asian utility source said his company may have the capacity to accept one H2 September cargo depending on the terminal slot availability and local demand.
Meanwhile, Atlantic supplies received further boost as Nigeria LNG offered a third spot cargo for loading in late August, market sources said.
Nigeria LNG was previously offering two 140,000 cubic meter cargoes loading August 24-26 and August 27-29 via a FOB tender closing August 1. A third similar-sized cargo is now also being offered, with the loading time said to be between the other two.
H2 August started the week at $14.40/MMBtu, rising to $14.75/MMBtu Friday, narrowing the contango to H2 September from 10 cents/MMBtu to 5 cents/MMBtu.
Supply for the prompt delivery market tightened as news emerged that a North Asian utility has previously secured two end-August delivery shipments in the high $13s/MMBtu.
Sources said August requirements were mostly covered, but added that China's CNOOC could be able to take in one spot cargo for that period. CNOOC could also push delivery back to early September due to a dearth of August shipments.
Platts FOB Middle East was at $12.75/MMBtu Friday, after starting the week at $12.65/MMBtu.
The Asia Pacific Day Rate was stable at $90,000/day through the week. "No ships are available now for September," a source said, "Shipping is tight and the FOB Middle East spot market is tight as well."
