Platts: February Asia LNG Spot Prices Rise

Asia liquefied natural gas (LNG) spot prices for month-ahead delivery gained 11% from December to January, rising to $17.348 per million British thermal units (/MMBtu) on the back of high winter demand, according to the latest monthly Platts Japan/Korea Marker (JKM) data.

On a year-on-year basis, the Platts February JKM marker was up 9% from January 2012, when the Platts JKM price assessment for February delivery was at $15.937/MMBtu. This was the first year-on-year increase in five months.

“Lower-than-expected winter temperatures triggered the need for additional spot market supplies amid competing demand from South America. The latter generated more bullish sentiment, as spot availability to the Far East was further reduced, aggravating the tightness in the market,” said Sarah Cottle, Asia and Europe power editorial director at Platts, a leading global energy, petrochemicals and metals information provider and a premier source of benchmark price references.

The latest monthly Platts JKM average for month-ahead delivery, i.e. delivery in February 2013, was assessed over the period of December 17, 2012 to January 15, 2013.

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.

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LNG World News Staff, January 18, 2013