Asian spot prices for liquefied natural gas (LNGLF)
(LNG) slid for the third straight week, as pressure mounted from new Australian and U.S. supplies, traders said.
LNG for April delivery in Asia eased to $4.30 per million British thermal units (mmBtu), down 20 cents from the previous week.
Traders said they expected prices to fall below $4 during the summer as supply continues to pick up from new projects.
"There's a bit of a squeeze going on from both sides of the world so prices are only going to go one way until things start to stabilise," said a trader.
Cheniere Energy expects to export eight to 10 more cargoes of LNG in the next two months out of its newly commissioned Sabine Pass terminal.
At the same time traders said China's Sinopec was offering cargoes from Australia Pacific LNG (APLNG) and Chevron Corp is offering cargoes from the Gorgon export plant off northwest Australia.
Adding to supplies, Russia
's sole LNG export plant, Sakhalin-2, restored full production on Feb. 28 after a technical fault in late January disrupted it.
Indonesia's Tangguh LNG export plant launched a tender to sell 12 cargoes a year in 2017 and 2018.
One bright spot for demand was Argentina
as YPF launched a tender to buy 32 liquefied natural gas (LNG) cargoes for April to August delivery.
Traders said end users of LNG in Asia remained largely on the sidelines with very limited buying activity.
"Very few Japanese players are buying, the Chinese aren't, the Koreans aren't, so I think the only trading that's really happening is the people... that have contracts to deliver to Asia," said a trader.
(By Sarah McFarlane and Oleg Vukmanovic; Editing by David Evans)