US LNG share prices fall amid Chinese demand slump
Published by Will Owen,
According to the latest Reuters report, US LNG company share values have declined as China has begun suspending purchases amid weaker demand and record low spot prices.
China is the second largest LNG importer in the world, however its spot imports have all but dried up as of late, due to the economic impact of the coronavirus epidemic. A very mild winter has also continued to cap demand for heating.
As a result of these conditions, Cheniere Energy, the largest exporter of LNG in the US, has reportedly seen its shares drop by 3.4% to their lowest level in over a year (US$57.65). Similarly, Tellurian’s shares are reported to have fallen by 7.4% to US$7.07, and NextDecade Corp’s by 5.6% to US$4.70.
Reuters is reporting that LNG traders have hurriedly seeking to re-direct cargoes bound for China to new markets, causing Asian LNG spot prices for April delivery to hit record lows. In the past week, prices were estimated at US$2.99 per million Btu, approximately the cost of keeping the fuel chilled.
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/07022020/us-lng-share-prices-fall-amid-chinese-demand-slump/
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