SINGAPORE: Asian spot prices for liquefied natural gas (LNG) rose for a second consecutive week and touched their highest since January, buoyed by higher oil prices and firm demand from China and Europe, industry sources said.

The average LNG price for July delivery into Northeast Asia was estimated at about $10.95 per million British thermal units (mmBtu), up 65 cents from the previous week, they said.

“LNG prices are expected to recover over the course of 2021 as vaccination rates improve and strict restrictions are gradually repealed,” Fitch Solutions Country Risk and Industry Research, a unit of Fitch Group, said in a note on Friday.

Demand from China remains robust, with the country importing more than 7 million tonnes of LNG in May, a record for the month, as industrial activity picked up pace amid strong domestic demand.

China’s robust imports are expected to continue in June and July, continuing to boost prices, traders said.

China National Offshore Oil Corp (CNOOC) sought 10 LNG cargoes for delivery over July to March in a tender that closes on June 4, one source said.

A buy tender by Pakistan LNG received offers in the range of $10.2937 to $11.7747 per mmBtu for cargoes to be delivered in July, and $10.51 to $10.8312 for cargoes to be delivered in August.

ADNOC LNG sold a cargo for July 7-16 loading at $10.30 per mmBtu on a delivered basis, likely to India, while Oman LNG was offering a cargo for delivery over Aug. 7-9, sources said.

Japan’s Kansai Electric sold a cargo from the APLNG plant for Aug. 7-9 delivery at $10.50 to $10.90 per mmBtu while Tohoku Electric purchased a cargo for Aug. 11-15 delivery to Japan at around $10.30-10.40 per mmBtu, they added.

Brazil’s Petrobras is seeking four cargoes for delivery over July to August as dry season and low reservoirs at hydroplants is spurring buyers to seek LNG cargoes to complement power generation with thermal plants, one source said.