Asian spot LNG prices this week remained steady. In response to high inventories and oversupply in the region, several trade sources said prices were still hovering near record lows.
The average LNG price was estimated to be about $2.10 per million British thermal units (mmBtu) for July delivery into northeast Asia LNG-AS. Prices were slightly higher at about $2.20 to $2.30 per mmBtu for cargoes to be delivered in August.
As European inventory is already at pre-winter storage levels and Chinese storages are filling up, a Singapore-based trader said demand is starting to slow down again. Several cargoes have been deferred to the later part of the year by South Korea’s Korea Gas Corp (KOGAS) as it grapples with high inventory.
Due to the coronavirus outbreak and high inventory, demand in Japan is still down. However, a cargo bought by Tohoku Electric for delivery in July at about $2.10 to $2.20 per mmBtu. For delivery in August, Japan Petroleum Exploration Co (Japex) was seeking a cargo.
For delivery in September, India’s Bharat Petroleum Corp is seeking a cargo while a cargo for delivery in early July bought by Gujarat State Petroleum Corp (GSPC) at about $2 to $2.30 per mmBtu. From Papua New Guinea, Angola, Russia, Brunei and Indonesia, several cargoes were offered this week, showing that supplies are abundant.
