LNG cargo prices in India, Asian bids fall bellow $3/mmBtu
The pricing for a liquefied natural gas (LNG) deal in India and bids for cargoes in northeast Asia have fallen to unusually low levels of below $3 per million British thermal units (mmBtu) this week.
The LNG market has been hit by a dip Asian demand due to warmer-than-usual winter temperatures and the coronavirus outbreak, while the market has continued to be well supplied by projects around the world.
India’s Reliance Industries purchased an LNG cargo via tender on Wednesday at $2.80 per mmBtu, two industry sources said, with one saying the delivery window was on April 1-3.
Sources said the price was the lowest in many years.
The Japan-Korea-Marker (JKM) price, assessed by S&P Global Platts, fell to a record low of $3.512/mmBtu on Monday.
But the downward movement has continued, with bids plummeting below $3/mmBtu on Platts Market on Close window.
On Wednesday, one bid at $2.79 per mmBtu was placed by Engie for an April cargo and a $2.80 per mmBtu bid was placed by BP for a March cargo.
Source: Reuters (Reporting by Ekaterina Kravtsova; Editing by Edmund Blair)