Reuters are reporting that Asian spot LNG prices have week amid a rush of export tenders and slow demand from North Asia.
Spot prices for August delivery LNG-AS edged down 5 cents to US$5.45 per million British thermal units (mmBtu).
Deal activity in the Asia-Pacific remains muted, forcing the market to use a recent ExxonMobil export tender for an end-July loading cargo from the Gorgon LNG project as a price reference.
The Gorgon cargo, was likely sold slightly below mid-US$5 level to a Chinese buyer.
The market has shrugged off recent production outages as concerns over tighter supplies were assuaged by a series of export tenders launched by West African and Indonesian projects.
Nigeria LNG and Angola LNG are both offering July-loading cargoes in tenders that close next week.
Indonesia's Donggi-Senoro LNG project is also offering a cargo for September-delivery to the Far East, indicating that the market remains well supplied.
Meanwhile, demand for August-delivery cargoes remains thin. Instead pockets of demand are only seen emerging later in the year, with import tenders from Japan and Mexico seeking some supplies for delivery in September and beyond.
A glut in global supplies is expected to persist after Qatar said it would raise its LNG production capacity by 30% to 100 million tpy this week.
The greater supply and expected increase in market liquidity would encourage more buyers to buy spot LNG.
Read the article online at: https://www.lngindustry.com/liquefaction/13072017/prices-dip-as-more-supply-emerges/