Global LNG-Asian prices climb as European re-exports dry up

LONDON, Jan 10 (Reuters) - Asian spot liquefied natural gas (LNG) prices for February delivery jumped this week on tighter supply and continued, if limited, winter demand for the fuel.

Supplies to Asia have tightened as European import terminals capable of re-loading tank-held LNG onto tankers for onward delivery have cut back the practice.

Re-export terminals in Spain are offering fewer cargoes to Asian buyers after over-commitments in December combined with cold weather and low renewable output triggered gas shortages.

A trader said Spanish LNG buyers are now looking to buy additional cargoes of LNG to fill domestic requirements, putting a squeeze on Asian markets where prices have climbed back to the $19 per million British thermal units (mmBtu) mark.

Asian prices LNG-AS were around the $18.50/mmBtu level last week. A cargo recently re-exported from the Gate terminal in the Netherlands was diverted to Spain after initially being destined for Asia.

Spanish gas prices surged late last month to around $16.50/mmBtu, making the market more attractive compared with Asia after taking into account greater shipping costs.

Re-exports from the Gate terminal are expected to lag previous month levels, however, given low inventories, according to a source there.

A winter gas price surge in Spain, southern France and Turkey has made the Mediterranean a premium destination for liquefied natural gas (LNG) cargoes produced in the Atlantic Basin, restricting supply that would otherwise have been re-exported to Asia.

A two-day shutdown at Norway's Snoehvit LNG plant this week, Europe's only production facility, only reinforced bullish sentiment, although the issue was quickly resolved.

On the demand side, Thailand's PTT has launched a buy tender for two LNG cargoes for March delivery, a trader said.

"Spain isn't loading up tankers and there is limited availability at Gate," he added.

Beyond an emergency stash of cargoes, the world's biggest producer Qatar is not offering any more spot cargoes for sale until April, adding to the bullish outlook.

"It's all about the weather at the moment - just a drop of a few degrees and the situation could change significantly," he said.

(Reporting by Oleg Vukmanovic; Editing by David Evans)

((Oleg.Vukmanovic@thomsonreuters.com)(44 207 542 0014)(Reuters Messaging: oleg.vukmanovic.thomsonreuters.com@reuters.net))

Keywords: MARKETS LNG/