Latest LNG import data from key Asian buyers show average prices rising ahead of key winter buying. South Korea paid $8.44/mn BTU for August imports, up $0.35/mn BTU on July and the second highest figure this year. Japan paid $5.80/mn BTU for spot cargoes contracted in August – roughly equating to September arrivals – up $0.20/mn BTU (see chart). And latest Reuters Asian spot assessments have prices rising further to $6.40/mn BTU for October delivery, and $6.80/mn BTU for November, the highest level since February. That said, the fact that spot prices remain around $2/mn BTU weaker than those under oil-linked long term contracts is symptomatic of a continued fundamental market weakness.
LNG prices have received support from the delayed start-up of the Chevron-operated 8.9mn tons/year Wheatstone project in Australia. The project, in which Kuwaiti state firm Kufpec has 13.4% (MEES, 8 September), is finally slated to ship its first cargo late this month. Continued support comes from expected lower arrivals from the US in the wake of Hurricane Harvey. (CONTINUED - 469 WORDS)
