Asian spot liquefied natural gas (LNG) prices remained stable this week for the fourth week in a row, with global demand staying weak and spot market activity reduced.
The average LNG price for August delivery into northeast Asia was estimated at around $2.20 per million British thermal units (mmBtu), the same level as the previous week.
Despite low spot prices, cargo requirements are muted due to strong gas oversupply around the world, industry sources said, with inventory levels high in Asia and long-term contracts largely covering demand.
Some sellers kept offering cargoes to the spot market, however.
Russia’s Sakhalin 2 plant offered a cargo for Aug.18 loading in a tender this week.
Australia’s Ichthys plant was selling two cargoes for loading over late July and early August.
Abu Dhabi National Oil Co (ADNOC) has sold an LNG cargo for loading in early August at a price of high-$1.00s ($1.80-$1.95) per mmBtu on a free-on-board basis (FOB).
Exxon Mobil Corp’s Papua New Guinea export plant awarded a July 23 loading cargo at $2.15 per mmBtu on a delivered ex-ship basis, two sources said.
On the demand side, Turkish state energy company Botas was seeking five cargoes for delivery in August and September.
In India, Essar Steel was looking to purchase cargoes for delivery over 2021 to 2023.
Argentinean energy company Integracion Energetica Argentina (IEASA) has received offers from six companies in its tender for August and September delivery. Offers came from Cheniere , BP, Total, Vitol, Trafigura and Glencore.
France’s major Total was among the winners, two industry sources said.
Argentina is one of few countries in Latin America having some spot demand this year, with LNG imports in the region falling to 6.7 million tonnes this year, down almost 38% from a year ago. This has reduced supply of U.S LNG to the region by 30%.
There was also a tender from Colombia’s Calamari import project, but it was looking for a partial cargo only, one trader said.