SINGAPORE: Asian spot prices for liquefied natural gas (LNG) slipped for a fourth consecutive week as surplus spot cargoes built up and demand remained poor in major gas-consuming regions.
The May spot LNG contract fell by 5 cents to $7 per million British thermal units (mmBtu), squeezed by ample supplies, though the fall in price was limited by a higher-than-expected sale price from Australia, trade sources said on Thursday.
Most markets will be closed on Friday for the Good Friday Easter holiday.
There were several unsold April cargoes still available in the spot market with demand nearly drying up from traditional buyers in North Asia, the trade sources said. The restart of nuclear reactors in Japan is also expected to weigh on demand from the country's utilities, they added.
Malaysia's Petronas has a late-April loading LNG cargo from its Bintulu export plant still unsold, while Angola LNG has re-issued a tender offering its April cargo for sale, traders said. Nigeria LNG has also issued a tender offering cargoes for sale for April to June loading, they said.
LNG supplies from May onwards also look plentiful with Russia's Sakhalin offering a late May-loading cargo while Gail (India) has offered three cargoes for May-July loading from Sabine Pass in the United States, where it has a long-term purchase deal with Cheniere Energy.
Still, traders were surprised with a cargo they said was sold by Australia Pacific LNG (APLNG) for May 25-31 loading at about $7 per mmBtu on a free-on-board (FOB) basis. This was higher than market expectations, they added.
"There must be some pent-up demand still if someone is willing to pay that much," one LNG trader said.
Taiwan's CPC Corp was one of the few North Asian buyers seeking a spot cargo for the second half of May, likely in anticipation of higher summer demand for power generation.
Indian buyers continued to seek cargoes in the spot market with Gail (India) and GSPC issuing buy tenders seeking cargoes for delivery through April and May, traders said.
Indian Oil Corp likely bought an LNG cargo for delivery in the first half of May at $7.15 per mmBtu on an ex-ship basis, they said, though the deal could not be confirmed.
Kuwait Petroleum Corp also sought a cargo for delivery in May, they added.
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