Platts: November Asia LNG Prices Climb

Asia liquefied natural gas (LNG) spot prices for November-delivered shipments rose for the first month in four, gaining 0.3% to $13.005 per million British thermal units (/MMBtu) during the traditional winter stockpiling period, according to Platts Japan/Korea Marker (JKM) data.

The rise compares with a 4% month-on-month fall for October-delivered shipments, the data showed. Prices of LNG cargoes for November delivery fell 25% compared with the same month in 2011. The average Platts JKM price for November-delivered LNG cargoes reflects the monthly average of all daily JKM assessments published from September 16-October 15.

“Demand remained weak in North Asia even though November is a traditional stockpiling period in preparation for the peak winter demand,” said Sarah Cottle, Platts editorial director, power. “Adequate inventories across the region kept the increase capped despite supply disruptions in Yemen and Nigeria.”

The Platts JKM is an assessment of LNG prices for spot cargoes delivered to Japan and South Korea, based on the most recent trades and/or bids and offers from buyers and sellers in the open market prevailing at the close of the trading day. The monthly JKM assessments are month-ahead delivered prices and are an average of the daily JKM price assessments reported by Platts.

“Despite weak demand in Asia and Europe, drops in global supply caused by unplanned disruptions, maintenance and exporters producing less in order to support prices, have resulted in a slight increase in LNG spot prices,” said Javier Diaz, energy analyst at Bentek Energy, a specialist in natural gas fundamental market data analysis, which was acquired by Platts in 2011.

Meanwhile, the prices of substitute fuels, thermal coal and fuel oil, which are burnt by Asian utilities, dropped 2% and 3% respectively for the month.

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LNG World News Staff, October 18, 2012