Asian spot LNG prices fell on a round of new tenders expected to add supply into an already weak market amid stable production and receding Egyptian demand.
Spot prices for June delivery fell to about $5.50 per million British thermal units (mmBtu), 20 cents below last week, as fresh supply and still weak shoulder-month demand weighed on the market. July prices traded at similar levels.
Angola has put a mid-May loading cargo up for tender, while Nigeria LNG also offered more supply, having closed a sell tender early on Friday, trade sources said.
Nigeria’s Bonny plant has been adding supply into the spot market steadily. It closed a tender in late April to sell a May cargo.
Indonesia’s Bontang plant on Friday launched a tender to sell two cargoes across June and July, with the country’s Donggi-Senoro project also offering supply.
Full storage tanks at one Indian terminal may constrain imports, leaving more supply available on the market, especially as producer Qatar works to find homes for tankers initially earmarked for Egypt.
Egypt, enjoying surging domestic gas production, is holding talks to defer dozens of cargoes due this year. That’s impacting trade houses handling shipments from Qatar – which now has more supply on its hands than anticipated.
However, the overall number of cargoes so far deferred by Egypt is not massively significant, traders have said.
On the demand side, Chile is seeking a partial cargo, while Colombia seeks two partial cargoes in a tender due to close on Monday.
Analysts believe demand could pick up towards July as rising temperatures lift air conditioning demand in Asia.
Source: ReutersPrevious Next