Global LNG Prices Eroded By Mounting Supply

Posted by Eric Haun
Friday, March 04, 2016
Asian spot prices for liquefied natural gas (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)

Maritime Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter May 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Finance

Defense Appropriations Bill Includes $1 Bln for US Icebreaker

The U.S. Senate Appropriations Committee’s FY2017 Defense Appropriations Bill has included $1 billion in funding to accelerate construction of a new polar icebreaker for the U.

Higher Capesize Demand Pushes up Baltic Index

The Baltic Exchange's main sea freight index, tracking rates for ships carrying dry bulk commodities, rose on Friday buoyed by higher demand for capesize vessels.

TT Club Reports Robust Financial Results for 2015

TT Club has announced its financial results for the year ended December 31, 2015, and AM Best affirms its A- (Excellent) rating for the 10th consecutive year.   Knud Pontoppidan,

Energy

Hercules Offshore Filing for Bankruptcy Again

Hercules Offshore Inc said it planned to file for prepackaged Chapter 11 bankruptcy, just six months after the rig contractor emerged from bankruptcy protection.

Strike Idles 38 Oil Tankers at Fos-Lavera

Some 38 oil tankers have been held up at the Fos-Lavera oil port in southern France, the country's biggest, including 25 at harbour, up from 12 the previous day,

Höegh LNG Turns to Profit in 1Q

Höegh LNG returned to profit following a Profit after tax of USD 6.3 million for the first quarter of 2016, up from USD 4.0 million net loss in the fourth quarter 2015.

LNG

NASSCO Lays Keel for Jones Act Tanker Liberty

U.S. shipbuilder General Dynamics NASSCO hosted a keel laying ceremony on Thursday, May 26 for the Liberty, one of three new ECO Class Jones Act tankers under a

Höegh LNG Turns to Profit in 1Q

Höegh LNG returned to profit following a Profit after tax of USD 6.3 million for the first quarter of 2016, up from USD 4.0 million net loss in the fourth quarter 2015.

World’s Biggest LNG Buyer Becomes Seller

EDF Trading, a wholly-owned subsidiary of French power giant EDF, has signed an LNG sales and purchase agreement with Japanese LNG aggregator Jera Co Inc, one

News

US Hospital Ship Aids South Korean Sailor

A U.S. hospital ship conducted a medical evacuation, or “medevac”, May 27 to assist an ailing Republic of Korea sailor aboard a Republic of Korea Navy (ROK-N) submarine.

Details El Faro's Sinking Emerge from US Probe

U.S. investigators on Friday concluded two weeks of hearings into the sinking of cargo ship El Faro in a hurricane last fall that included reports the vessel had

NASSCO Lays Keel for Jones Act Tanker Liberty

U.S. shipbuilder General Dynamics NASSCO hosted a keel laying ceremony on Thursday, May 26 for the Liberty, one of three new ECO Class Jones Act tankers under a

 
 
Maritime Standards Offshore Oil Pipelines Port Authority Salvage Ship Electronics Ship Repair Ship Simulators Shipbuilding / Vessel Construction Sonar
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1450 sec (7 req/sec)