Asian LNG spot price to average $6.25/mmBtu in Q3, $7/mmBtu in 2016

SINGAPORE: Asian spot prices for liquefied natural gas (LNG) are forecast by Goldman Sachs to average $6.25 per million British thermal units (mmBtu) in the third quarter this year and $7 per mmBtu in 2016.

Prices of LNG in Asia, the biggest market of the fuel, have tumbled to $7-$8 per mmBtu from above $20 per mmBtu at the beginning of last year in a perfect storm of lower oil prices, new supply coming online and lower-than-expected demand.

Goldman Sachs said in a report that a wave of new supply expected to come online in Australia and the United States in the second half of this decade will outpace demand growth by 5 percent per year.