Reuters/London/Perth
Asian prices of liquefied natural gas fell to around $15 per million British thermal units (mmBtu) this week amid low demand from Japan, despite some support from Brazilian spot buying and tenders by Argentina and Mexico.
LNG prices have fallen sharply in the past few weeks after reaching more than a four-year high of nearly $20 per mmBtu in February, when a round of last-minute winter buying combined with supply disruptions in several producing countries.
Japan, the world’s largest LNG importer, has been increasing its use of coal at the expense of more expensive oil and LNG to counter a jump in energy import costs. Its overseas LNG purchases fell 2% in February, government data showed.
Last week, Argentina secured around 14 cargoes at between $15.50 and $16.50 per mmBtu for delivery in May through September, trade sources said.
Mexico has launched a tender for about 18 cargoes for delivery in June-December this year, which is still under consideration, and for a further 25 cargoes spread across 2014.
The tenders and spot interest from Brazilian state-run energy firm Petrobras have helped moderate the recent price slides in Asia.
LNG prices also may get a boost from forecasts for mostly warmer-than-average weather in Japan from April to June, which could increase the demand for electricity.
In Europe, British weekend gas prices rose after inventories plummeted this week as looming production outages are expected to squeeze supplies and the country heads into more abnormally cold weather.
US gas prices were slightly higher at just over $4 per mmBtu.
