GLOBAL-LNG-Asian spot prices fall on coronavirus outbreak in India
Asian spot prices for liquefied natural gas (LNG) fell this week after India, the world’s fourth largest importer, cancelled cargoes as the coronavirus outbreak hit demand.
The average LNG price for July delivery into Northeast Asia LNG-AS was estimated at about $9.60 per million British thermal units (mmBtu), down $0.65 from the previous week, industry sources said.
Buyers rejecting cargoes offered for more than $10 per mmBtu and an extension of Taiwan’s soft lockdown also helped to drag prices down, traders said.
India’s city gas distribution company GSPC has asked suppliers to cancel cargoes for June delivery, industry sources say. Buyers have been selective as inventories are full and LNG demand for transport, commercial and industrial sectors fell amid rising coronavirus infection rates here.
DGI bid at Japan-Korea-Marker (JKM) price LNG assessed by S&P Global Platts minus $0.14 for delivery between July 3-5 in Taiwan.
Egypt’s Natural Gas Holding Company (EGAS) sold this week a cargo for loading on May 22-23 at $8.30-$8.40, industry sources said.
Trafigura offered a cargo for JKM price plus $0.05, for delivery between July 1-3, for delivery to a port within the Japan, Korea, Taiwan and China area, a trader said.
The volume of gas flowing to U.S. LNG export plants averaged 10.9 billion cubic feet per day (bcfd) so far this month, down from April’s monthly record of 11.5 bcfd. Natural gas futures in the country eased to a fresh three-week low on Friday as production continued to edge higher and exports slip.
Source: Reuters (Reporting by Sabrina Valle; Editing by Susan Fenton)