Asian 'spot' LNG will drop to $6.25/mmbtu
Asian spot LNG prices are likely to remain below $8/mmbtu for the rest of 2015.
“There is an oversupply situation and weak demand,” says an LNG sector source. In the second half of February there was a minor upward correction of $0.30-$0.40/mmbtu, which dropped down again.
Market forecasts in March say Asian spot prices will fall to a low of $6.25/mmbtu by third quarter 2015 before rising to $7/mmbtu by 2016. But Asian buyers are unlikely to capitalise on these low prices.
“Unlike Europe," we hear, Asia doesn’t have good gas storage infrastructure.” Dabhol received its fifth cargo of 2015 on March 10 aboard LNG tanker Yenisei River from Bonny Island in Nigeria for GAIL, which has not imported a cargo to Dahej since December 27, 2014.
From January 1 to March 12, India received 20 spot and short/medium term cargoes: five at Dahej, nine at Hazira, five at Dabhol and one at Kochi. Reliance is bringing in a cargo at Hazira next week and GSPC is bringing one in at Dahej.
