Global LNG Prices Drop

Asian LNG spot prices fell last week due to a lack of significant new demand from the Middle East and others as supplies emerged from Papua New Guinea, Angola, Abu Dhabi and Russia Spot prices for July delivery LNG-AS were assessed at $5.45 per million British thermal units (mmBtu), down five cents from the previous week. Demand from Argentina to South Korea and Japan did little to lift July prices above later months and establish a backwardation curve, one trader said, instead pointing to relatively flat prices in Asia’s high-demand summer months. “Demand is not getting weaker but the problem is that all the demand from the Middle East, places such as Egypt, has been committed, and there is not much new demand coming to push up spot prices,” a trader said. But additional supplies from new project start-ups are around the corner. Test cargoes from Chevron’s Wheatstone project in Australia are due from June or July. Meanwhile, exports from Train 4 at Cheniere’s Sabine Pass plant are to start in September.