GLOBAL LNG-Prices lift on UK gas gains as Middle East demand heats up
By Oleg Vukmanovic and Sarah McFarlane
MILAN/LONDON May 27 (Reuters) - Asian liquefied natural gas (LNG) prices rose while warming temperatures in the Middle East coupled with the start of Ramadan next week looked set to boost regional electricity consumption.
Spot LNG prices in Asia inched up to $4.70 per million British thermal units (mmBtu), up 5 cents from last week, but remain highly sensitive to any additional supply.
"It just needs Angola to load a couple of cargoes or Gorgon to load a cargo and the whole thing is going to come off," said a Europe-based trader.
The Chevron-led Angola LNG project, shut down in April 2014 following a pipe rupture, is expected to resume exports soon, a project spokeswoman has said, but exact timings are sketchy as traders cite delays.
Australia's Gorgon scheme, operated by Chevron, re-started operations last week after an unplanned shutdown in April, but fresh supply is not expected until next month, sources said.
Guiding gains in Asian LNG spot prices was a 10 percent weekly jump in gas futures prices at Britain's trading hub, the National Balancing Point, and slightly stronger crude oil, traders said.
In the Middle East traders expected demand from Kuwait and Dubai.
"The summer has got warm fairly quickly and Ramadan starts in around two weeks' time... so power demand is going to be strong through June and the first part of July," the Europe-based trader said. Continuación...