LNG spot prices in Asia are rebounding after hitting a 6-year low in late January, as production problems at Russia's Sakhalin have tightened winter supply in northeast Asia.
The Platts March JKM rose 30 cents/MMBtu to $5.35/MMBtu Tuesday, and bids emerged close to $6/MMBtu by early Wednesday, with at least one deal concluded for late February or early March delivery at around $6/MMBtu DES.
The events at Sakhalin have resulted in extra demand from at least one portfolio seller, and prompted some of the facility's long-term customers -- South Korea's Kogas and several Japanese gas and power utilities -- to review their LNG inventories, already affected by a recent cold snap in the region.
"At this moment, we are not going to request additional cargoes," said one of the buyers. "But if the force majeure continues, of course it will affect us."