Asian LNG prices slide on sluggish demand, weather and N-boost

LONDON / Reuters

Asian spot liquefied natural gas (LNG) prices fell for a third week as above-average temperatures softened demand across North Asia and top consumer Japan resumed output from a long-shut nuclear reactor. Spot prices for May delivery slipped to about $7.10 per million British thermal units (mmBtu), 60 cents below last week’s levels, said several trade sources surveyed by Reuters. Japan’s power utility Kyushu Electric Power Co restarted a reactor at its Genkai plant, the fifth nuclear power station in the country to
be cleared under new safety regulations imposed after the Fukushima disaster.
Kansai Electric appears to have failed to find a buyer for its cargo from Australia’s AP LNG project for loading May 21-22, traders said. Angola reissued its tender for a cargo loading on the Etosha tanker in early April, traders said.
With the Atlantic-Asia spread tightening, more US cargoes were traded within the region, including Mexico, where several recent shipments are heading. Mexico’s state-run CFE receives bids in a tender for two cargoes for delivery in April, trade sources said.
A free-on-board cargo was being offered from Norway’s Snoehvit liquefaction plant for early May, several traders said. A European trader made an offer through a platform of market intelligence firm Kpler for a cargo to be delivered in late May to Japan, Korea, Taiwan or China (JKTC) at $6.90 per mmBtu, several traders said.