Wednesday, 29 January 2020

COLUMN-LNG, the champagne of fuels, should enjoy its beer moment: Russell - Reuters

COLUMN-LNG, the champagne of fuels, should enjoy its beer moment: Russell - Reuters:


It’s been an extremely weak start to the new decade for liquefied natural gas (LNG) with spot prices in Asia falling to more than 10-year lows, but it’s not all doom and gloom for an industry that sees itself as part of the solution to climate change.

The average spot price for LNG LNG-AS delivered to north Asia for March dropped to $4 per million British thermal units in the week to Jan. 24, with some cargoes trading at just $3.95.

At below $4 per mmBtu, the spot price is at the weakest level in Asia since summer of 2009, according to data from S&P Global Platts, the price reporting agency that assesses the benchmark Japan-Korea-Marker (JKM) price.

The price is down 41% from its winter peak of $6.80 per mmBtu, hit in the week to Oct. 11, meaning that the super-chilled fuel has effectively missed out on the usual boost to prices from demand in north Asia in the colder months.

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