Oct 14 Asian spot liquefied natural gas (LNG)
prices for November delivery steadied this week while December
widened its premium in a slow week of deal making as traders
focused on tenders.
The price of LNG for November delivery was $6.20 per million
British thermal units (mmBtu), in line with last week, while
December traded around $6.55 per mmBtu, according to trade
December prices may have been pushed higher from earlier
this week by strong bids for four December-loading cargoes
offered by Russia's Sakhalin II export facility, one source
Demand from price-sensitive Indian buyers remained strong
despite rising prices.
"When the Indians are willing to pay market rates (above
$6/mmBtu), it tells you something about the market," a
Singapore-based LNG trader said.
Earlier in the week, Korea Gas Corp tendered to buy four
cargoes for delivery across November-February, as it seeks to
South Korean demand may firm as a new reactor went offline
this week, adding to a fleet of reactors already taken out of
service due to either last month's earthquake or planned
Indonesia's Pertamina tendered to sell one or two cargoes
per month in 2017 from its Bontang liquefaction plant and is to
be priced against a basket of Japanese crude oil grades, known
as the JCC.
And Angola's recently refurbished export facility continued
to pump out cargoes as it launched its third tender for a
Gains in spot prices may be capped by new production from
the Australia Pacific LNG (APLNG) project that is underway, and
returning U.S. supplies. Cheniere's Sabine Pass is scheduled to
come back from maintenance next week.
(Reporting by Oleg Vukmanovic in Milan and Mark Tay in
Singapore; Editing by Ruth Pitchford)