'Tree' pid='17524' datel Wrote:
The ICIS East Asia Index (EAX) March contract for physical LNG closed at $21.413/MMBtu on Friday, 15 February, marking the highest Asian spot LNG assessment recorded by ICIS.
ICIS LNG Analyst Simon Ellis said: “The near-term cause for the price rise has been competition from South America, as Brazil has purchased unprecedented levels of spot LNG to offset the fall in hydroelectric generation caused by a prolonged drought.“
“The tight market conditions have been exacerbated by unscheduled production problems at LNG plants, as well as the recommitment of spot LNG volumes to mid- and long-term contracts,” Ellis added.
ICIS’ March South America Index (SAX) reached a record $18.447/MMBtu on 15 February.
The ICIS DES (delivered ex-ship) Japan assessment was also assessed at a record high of $21.50/MMBtu on 15 February.
Prior to 2013, the ICIS DES Japan assessment was last quoted at more than $20.00/MMBtu on 5 September 2008.
ICIS Heren became the first price reporting agency to assess East Asian spot LNG prices in March 2008.
These is just amazing market forces. Argentina booked (28?) cargo moves for 2013... Brazil is coming in to the LNG Market for additional energy due to wheather varible that can tread for years at a time... Peru has met future cargos for Japan.
The commitment to meet the 75-85 MTPA void 2016-2020 needs those major LNG projects to be on schedual. I do not believe all will be done. Can a Singapore based trading spot market handle the demand? Yes... but at a cost.
Cheers