Reuters is reporting that Asian LNG spot prices have now fallen to their lowest level for the current season since 2016. This has been caused by additional supply entering the market from Egypt and Australia.
Spot prices for cargoes with a delivery date in April have dropped 25 cents to US$5.45 per million Btu. This is the lowest level for mid-March since 2016.
Prices for cargoes being delivered in May are reportedly not much higher at present. The latest estimates would suggest prices are currently US$5.50 per million Btu. While this may only be a five cent difference, it remains a sign that price recovery may be on the horizon.
One notable party that has benefitted from the continued low prices has been India, as its buying interest has recently peaked. For example, India’s Reliance Industries has issued a tender for 12 cargoes with delivery dates set for April 2019 through to March 2020.
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/15032019/asian-lng-spot-prices-now-at-3-year-low/