The ICIS East Asia Index (EAX) March contract for physical LNG closed at $21.413/MMBtu on Friday, 15 February, marking the highest Asian spot LNG assessment recorded by ICIS.
ICIS LNG Analyst Simon Ellis said: “ The near-term cause for the price rise has been competition from South America, as Brazil has purchased unprecedented levels of spot LNG to offset the fall in hydroelectric generation caused by a prolonged drought. “
“ The tight market conditions have been exacerbated by unscheduled production problems at LNG plants, as well as the recommitment of spot LNG volumes to mid- and long-term contracts, ” Ellis added.
ICIS’ March South America Index (SAX) reached a record $18.447/MMBtu on 15 February.
The ICIS DES (delivered ex-ship) Japan assessment was also assessed at a record high of $21.50/MMBtu on 15 February.
Prior to 2013, the ICIS DES Japan assessment was last quoted at more than $20.00/MMBtu on 5 September 2008.
ICIS Heren became the first price reporting agency to assess East Asian spot LNG prices in March 2008.
[mappress] Source: ICIS, February 19, 2013