Reuters is reporting that Asian LNG spot prices have fallen to an over two month low, due to increasing quantities of supply and dwindling demand.
The trend has been observed very clearly in Japan. For example, the country is expecting above average temperatures this winter which has led to lower demand for LNG for heating purposes. Japan is also currently in the process of restarting several of its nuclear reactors, reducing its reliance on LNG imports.
The latest December spot prices have fallen to US$10.20 per million Btu. These prices are reportedly the lowest they have been since August.
This current situation has had a variety of consequences across the region. One example being that multiple LNG supply tankers have been left stranded at sea in Malaysian and Singaporean waters as their cargoes remain unsold. Traders have told Reuters that there are at least half a dozen vessels in this position, carrying a total cargo of approximately 1 million m3 of LNG. This quantity of LNG cargo is worth more than US$200 million dollars at current prices.
Read the article online at: https://www.lngindustry.com/lng-shipping/26102018/asian-lng-spot-prices-fall-to-over-two-month-low/