July 3, 2020 / 11:12 AM / a month ago

GLOBAL LNG-Asian LNG prices stable as oversupply continues

* LNG buying remains subdued

* Papua New Guinea, UAE, Brunei cargoes offered on spot

* Europe reduces LNG supply as gas stocks high

By Ekaterina Kravtsova

LONDON, July 3 (Reuters) - Asian spot liquefied natural gas (LNG) prices were stable this week, with demand still sluggish in an oversupplied market.

The average LNG price for August delivery into northeast Asia LNG-AS was estimated at around $2.20 per million British thermal units (mmBtu), the same level as the previous week.

Some Chinese buyers were on the market and there could be gas demand for air conditioning in Japan due to hot weather, but overall, buying was subdued, industry sources said.

Indian buyers were quiet as there is not much capacity in Indian ports to take more cargoes, in particular during the monsoon season, an LNG trader said.

Supply offers prevailed this week in tenders.

Exxon Mobil Corp’s Papua New Guinea LNG export plant offered a cargo for loading on July 23.

Abu Dhabi National Oil Co (ADNOC) was offering a cargo for loading at its Das Island plant in early August. Brunei’s LNG export plant offered a cargo for delivery in mid-August.

Nigeria LNG has likely offered several cargoes in a bilateral deal for July to September loading, two sources said, but this could not be confirmed.

Russia’s Sakhalin 2 export plant has sold an August cargo for around $2.10-$2.15 per mmBtu, two separate sources said.

In terms of buy tenders, Pakistan LNG Ltd issued a new tender seeking a cargo for delivery in September, after issuing a tender for August delivery last week.

Demand also came from Argentina’s Integracion Energetica Argentina (IEASA), formerly known as ENARSA, which is seeking five cargoes for August and September delivery.

In Europe, June LNG deliveries dropped by 32% from volumes in May and by 5.6% from June 2019, Refinitiv data showed, as gas stocks in Europe move close to full capacity.

Gas storage sites in Europe are on average just over 80% full, according to Gas Infrastrucure Europe data. (Reporting by Ekaterina Kravtsova; editing by Nina Chestney)

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