The World's Top LNG Buyers Are Already Preparing for Next Winter




  • In Business
  • 2021-04-08 04:47:52Z
  • By Bloomberg

(Bloomberg) -- North Asia's liquefied natural gas importers are making earlier-than-usual moves to stock up ahead of the winter, after they were caught flat-footed this year by a sudden cold blast that sent spot rates skyrocketing to a record.

China's Sinopec purchased at least 35 cargoes for delivery between June and February through a tender that closed earlier this week, in part to prepare for the winter when demand for the fuel peaks, according to traders. Other buyers in China, Japan and South Korea are considering following suit, said the traders, who requested anonymity to discuss private details.

It's uncommon for Asian LNG importers to procure so many winter cargoes in April. The moves illustrate a desire to avoid a repeat of earlier this year when buyers were unable to find affordable shipments. China's government went as far as to scold the nation's state-owned gas buyers for being ill-prepared.

A burst of frigid winter weather, coupled with supply disruptions, forced buyers to scramble for cargoes and sent rates skyrocketing. Spot LNG prices for North Asia, home to the world's biggest importers, surged to $32.50 per million British thermal units in January, the highest on record and 500% higher than the same time last year.

Some traders voiced concern that seasonally low inventories in Europe may pull shipments away from Asia throughout the year. Buyers from the U.K. to Spain may aggressively try to restock supplies this summer, snatching up cargoes from the U.S. and other projects in the Atlantic, they said.

For more articles like this, please visit us at bloomberg.com

Subscribe now to stay ahead with the most trusted business news source.

©2021 Bloomberg L.P.

COMMENTS

More Related News

Asia Stocks Set for Steady Open on Growth Optimism: Markets Wrap
Asia Stocks Set for Steady Open on Growth Optimism: Markets Wrap

(Bloomberg) -- Asian stocks look poised for a steady start Monday after a third straight weekly Wall Street advance, with Federal Reserve Chair Jerome Powell...

Oil Steady Near $59 as Fed
Oil Steady Near $59 as Fed's Powell Points to Economic Growth

(Bloomberg) -- Oil was steady near $59 a barrel in Asian trading after Federal Reserve Chair Jerome Powell said the U.S. economy was poised for stronger...

Aussie Dollar Bulls Unbowed Despite Disappointing March
Aussie Dollar Bulls Unbowed Despite Disappointing March

(Bloomberg) -- Hedge funds look steadfastly bullish on the Australian dollar despite its decline against the greenback in March. The nation's employment data...

Harley-Davidson Nominates Ford CEO Farley to Join Its Board
Harley-Davidson Nominates Ford CEO Farley to Join Its Board

(Bloomberg) -- Harley-Davidson Inc. nominated Ford Motor Co. Chief Executive Officer Jim Farley to join its board, the latest move by CEO Jochen Zeitz as he ...

Grab
Grab's $34 Billion SPAC Deal Puts Southeast Asia Tech on the Map

(Bloomberg) -- Grab Holdings Inc. and Traveloka are poised to become public companies in coming months, kickstarting a coming-out party for Southeast Asia's ...

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply

Comments

Top News: Business