Prices inch higher on slightly improved demand outlook | Reuters

MILAN (Reuters) - Asian spot liquefied natural gas (LNG) prices for June delivery inched higher this week as the demand outlook improved slightly, trading sources said.

The price of Asian spot cargoes rose to around $7.40 per million British thermal units (mmBtu), from $7.10 per mmBtu last week.

Nigeria’s LNG export plant at Bonny awarded a tender to sell one cargo loading May 23-26 earlier this week, one trader said.

Mexico’s CFE also awarded a tender to buy 8 cargoes for delivery from June through August this week. Trade sources differed on the winner, but European commodity trading firms were considered likely to be among the buyers.

British network operator National Grid launched a new service this week offering to re-export cargoes from its Isle of Grain import terminal.

It said it had already received one enquiry to re-export.

Major buyers Korea and Japan were quiet this week, traders said. China, one of the key growth markets for LNG, has imported less than expected so far this year, they said.

Spain may only export one LNG cargo over the next two months, according to schedules published by gas grid operator Enagas.

Enagas lists four potential LNG re-exports from Spain in May, but of those only one is confirmed, at the country’s Sagunto terminal.

Another two cargoes may be loaded in June, it said in a separate provisional schedule.

Yemen’s LNG export plant remained shut following a declaration of force majeure earlier this month due to worsening security.

(Reporting by Oleg Vukmanovic; Editing by Jane Merriman)

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