Asia LNG Prices Steady, Buyers Well-stocked

Asian spot liquefied natural gas (LNG) prices were steady on Friday, as end users remained mostly well-stocked and in no rush to buy, traders said.

 

The price of spot LNG for April delivery was unchanged on the week at $7.75 per million British thermal units (mmBtu), while prices for May delivery were in the low $7s.

 

Some fresh demand offered support to the global market with Argentina's state-controlled YPF tendering to buy 11 shipments of LNG including six full cargoes and five partial cargoes.

 

Traders have been expecting a tender from Argentina for some months, after YPF delayed it from September last year due to ample supply and low demand.

 

Elsewhere there was limited activity, as the focus shifted to May from April.

 

"On the prompt (nearby market) we don't see too many cargoes," a trader said.

 

LNG prices are expected to stabilise in the near term, until new supply from Australia hits later this year, weighing on the market.

 

According to UK-based consultancy Energy Aspects, some 32 million tonnes per year of LNG terminals in Australia are expected to come onstream in 2015.

 

"The market will be supported until the summer, until you have all the Australian projects come on stream," a trader said.

 

Australia's North West Shelf LNG export plant has launched a tender to sell at least one cargo from April, with final bids due on Monday, traders said.