Platts: Asia Jan Spot LNG Prices Rise 7.2 Pct on Winter Demand

Prices of LNG for January 2014 delivery to Asia increased 7.2% from December to $18.958 per million British thermal units, as North Asian buyers continued to compete for winter cargoes, according to the latest Platts Japan/Korea Marker for month-ahead delivery.

The monthly average Platts JKM for delivery in January 2014 was assessed from November 18 to December 13.

The January-delivery price increase followed a 11.5% rise for the prior month, when the December-delivery price averaged $17.689/MMBtu.

On a year-over-year basis, the average January JKM was up 21.3% from the January 2013 average of $15.630/MMBtu.

“Aggressive procurement efforts from China’s buyers, who faced significant shortfalls in winter natural gas supplies, gave enough support for sellers to raise their offers and push deals into the $19/MMBtu level,” said Max Gostelow, associate editor of Asia LNG at Platts, a global energy, petrochemicals and metals information provider and a premier source of benchmark price references. “Following the China purchases for January, demand from buyers in Japan and South Korea buyers was much more subdued.”

Remaining buyers were reluctant to conclude deals above $19/MMBtu and cited several factors that suppressed demand: a combination of ample LNG supplies in tank, moderate temperatures in North Asia, and LNG prices already at or approaching oil parity. The apparent unsold number of Atlantic supplies remaining in the market also capped prices.

Given the limited demand from Asia at the end of the month, sellers began lowering their offers, which caused the daily JKM to dip back below the $19/MMBtu level.

Meanwhile, thermal coal and fuel oil – substitutes to LNG in the fueling of Asian utilities – were also mixed. Thermal coal on a month-on-month basis was up 13.5%, while fuel oil was 0.8% lower from December.

LNG World News Staff, December 19, 2013

Share this article

Follow LNG World News

Events>

<< Dec 2019 >>
MTWTFSS
25 26 27 28 29 30 1
2 3 4 5 6 7 8
9 10 11 12 13 14 15
16 17 18 19 20 21 22
23 24 25 26 27 28 29
30 31 1 2 3 4 5

The 6th CWC China LNG & Gas International Exhibition & Summit

Following on from LNG 2019 and five successful editions in Beijing, the established China LNG & Gas International Exhibition & Summit…

read more >

LNG Pricing, Trading & Hedging: 3-Day Training Course – Singapore / Jan 2019

This three-day training program provides a unique opportunity to learn and apply the practical skills, knowledge and tools needed to:…

read more >

American LNG Forum 2020

The American LNG Forum is your gateway to learning about the US LNG export industry,

read more >

2nd Global LNG Forum

Global LNG Forum is an exclusive networking and knowledge-sharing platform for top experts and business leaders in the industry.

read more >