Asian spot prices fall on supply overhang pressure
Asian spot liquefied natural gas (LNG) prices fell this week amid a weak European gas market and ample global supply, trade sources said.
The average LNG price for July delivery into northeast Asia fell to an estimated $1.85 per million British thermal units (mmBtu), down 7 cents from the previous week, traders said.
Several cargoes were offered in the spot market this week, dragging down prices in Asia, they added.
Russia’s Sakhalin 2 plant had offered a cargo for July loading while Angola LNG offered cargoes for June to September delivery through two separate tenders, traders said.
Papua New Guinea LNG had also offered a cargo for June loading, though results of the tender were not immediately clear.
Woodside Petroleum had likely sold a Northwest Shelf cargo for June loading at about $1.85 per mmBtu, but this could not be immediately confirmed.
On the other hand, demand remained stale globally with industrial demand for gas still not picking up pace amid the coronavirus outbreak.
Some demand was seen from China with Guangzhou Gas seeking two cargoes for delivery in August and September, while Thailand’s PTT was seeking a cargo for July delivery, traders said.
Mexico’s CFE was seeking two cargoes for delivery in June while Portugal’s EDP was seeking a cargo for delivery over June to July, they said.
Some Chinese buyers who had been scouting around for cargoes last week may now be slowing down their requirements amid a slide in spot prices, an industry source said.
Malaysia’s LNG exports in May are set to drop to their lowest since mid-2018, as producers globally are pressured to cut production amid record low spot prices.
Australia’s APLNG has also extended maintenance at its Curtis Island plant to mid-June, according to a notice on the Australian Energy Market Operator’s website.