Platts: July spot LNG prices to Asia plummet

Platts: July spot LNG prices to Asia plummet

Prices of spot liquefied natural gas for July delivery to Asia averaged $7.600 per million British thermal units, according to the latest Platts Japan/Korea Marker data for month-ahead delivery.

The figure reflects the daily Platts JKM assessed between May 18 and June 15 expressed as a monthly average.

The marker, which gained 6.7% month over month, started the assessment period at $7.750/MMBtu, but weakened over the course of the month to be assessed at $7.300/MMBtu on June 15, even as Asian power utilities entered the traditionally high-demand summer season, when electricity generators have to cope with increased air conditioning use in the northern hemisphere. However, this was 41.3% lower than the same period last year.

“The July market started off very strongly due to production issues at Australia’s Northwest Shelf project that resulted in some sellers raising offers quite aggressively,” said Max Gostelow, Platts pricing analyst for Asia LNG. “However, the expected demand spike never did materialize, and it quickly became apparent that supply in the region still far outstripped demand, with projects in Malaysia, Indonesia, Papua New Guinea, Russia, and even Australia’s Darwin project, having surplus cargoes.”

While buyers in Taiwan and Japan entered the spot market to buy several cargoes, most of the demand for July delivery was focused on India, which was the premium market in the Asia Pacific basin. However, by the end of the month, Indian prices had fallen to $7.300/MMBtu, the same price as the JKM, on slower demand due to India’s monsoon season, and declining prices in competing markets –such as the UK onshore National Balancing Point gas market. This marked the end of a recent trend that saw Indian prices consistently above the JKM since April 13.

Meanwhile, the price of possible competing fuel thermal coal was up 0.8% on a month-over-month basis, while fuel oil was down 0.6%  month over month during the May 18 to June 15 assessment period.


Image: Petronet LNG

Share this article

Follow LNG World News


<< Oct 2019 >>
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

CWC World LNG Summit & Awards Evening

The CWC World LNG Summit & Awards Evening will be returning to Rome in 2019 to celebrate it’s 20th year.

read more >

LNG Bunkering Mediterrean

The only 3-day course offering theoretical and practical training on LNG bunkering designed by the Mediterranean market leaders.   

read more >

6th Mozambique Gas Summit & Exhibit

This year’s edition will have a revamped programme for attendees.

read more >

FLNG World Congress 2019

2019 FLNG World Congress will bring together stakeholders across the floating liquefaction value…

read more >