Report: low demand pushes Asian spot LNG prices down
Spot LNG prices in Asia have been pushed down to US$5.40 per mmBtu over the week as the demand for May cargoes declined.
The focus moved towards securing June deliveries slightly getting the price up to $5.50 per mmBtu as demand was expected to rise with North Asian buyers getting ready for the summer demand.
Citing a Singapore-based trader, Reuters reports the trading activity was lower due to the Gastech conference held last week in Tokyo.
Additional spot cargoes have come to the market over the last week, which could have affected the prices. Angola LNG has issued a single cargo tender scheduled for loading on April 16-18. If snapped up by an Asian buyer the cargo could be delivered mid-May.
It was also reported that the second liquefaction train at Chevron’s Gorgon LNG facility on Barrow Island in Australia is still undergoing maintenance with restart expected by the end of this month.
Although summer demand is expected to boost the prices in the near term, additional LNG volumes from Australia, Malaysia and the United States could force the prices into another decline during the second half of the year.
LNG World News Staff