CANBERRA: Asian liquefied natural gas (LNG) prices for November delivery extended losses as new Australian supply hit the market and demand remained subdued. The price of Asian spot cargoes for November delivery slid to $6.60 per million British thermal units (mmBtu), down from $6.80 the previous week and $10.10 at the start of the year.
The price fall coincided with the continued pickup in Australian production. Gladstone became the latest project to gear up exports with a vessel set to begin loading shortly for a maiden delivery to Korea Gas Corp (KOGAS), operator Santos Ltd said. Demand from the top importing region Asia was “sluggish”, however, making it difficult to see where all the upcoming production would end up, a ship broker said.
“It’s hard to forecast weather, if it becomes cold early (Asian importers) may be more aggressively buying cargoes, but most of the buying interest is more and more South American and Middle Eastern and India a bit,” said the broker.
Traders said India has been taking the minimum possible on its long-term contracts, buying instead on the spot market to take advantage of falling prices. Elsewhere, Egypt is due to award commissioning cargoes for its second FSRU in the coming weeks.
A recent entrant to the LNG import market, Egypt, took delivery of its second import terminal on Wednesday and plans to start operations in the third week of October, EGAS said.
On the supply side, traders said Australia’s North West Shelf liquefied natural gas (LNG) export plant is offering to sell a cargo loading in late October, and more supply could be forthcoming from individual shareholders later.
