Platts: Asia LNG Spot Prices for February-Delivered Cargoes Gain 11% in
January on High Winter Demand
Year-over-Year LNG Prices Up 9% on January 2012 Levels due to Cold Wave
SINGAPORE, Jan. 17, 2013
SINGAPORE, Jan. 17, 2013 /PRNewswire/ --Asia liquefied natural gas (LNG) spot
prices for month-ahead delivery gained 11% from December to January, rising to
$17.348 per million British thermal units (/MMBtu) on the back of high winter
demand, according to the latest monthly Platts Japan/Korea Marker (JKM) data.
On a year-on-year basis, the Platts February JKM marker was up 9% from January
2012, when the Platts JKM price assessment for February delivery was at
$15.937/MMBtu. This was the first year-on-year increase in five months.
"Lower-than-expected winter temperatures triggered the need for additional
spot market supplies amid competing demand from South America. The latter
generated more bullish sentiment, as spot availability to the Far East was
further reduced, aggravating the tightness in the market," said Sarah Cottle,
Asia and Europe power editorial director at Platts, a leading global energy,
petrochemicals and metals information provider and a premier source of
benchmark price references.
The latest monthly Platts JKM average for month-ahead delivery, i.e. delivery
in February 2013, was assessed over the period of December 17, 2012 to January
The Platts JKM is an assessment of LNG prices for spot cargoes delivered to
Japan and South Korea, based on the most recent trades and/or bids and offers
from buyers and sellers in the open market prevailing at the close of the
trading day. The monthly JKM assessments are month-ahead delivered prices and
are an average of the daily JKM price assessments reported by Platts.
Meanwhile, during the assessment period, the prices of two substitute fuels --
thermal coal and fuel oil -- which are burnt by Asian utilities, dropped 1%
and gained 1%, respectively month-on-month.
Platts JKM and Substitute Fuel Prices (Monthly Averages)*
Feb-13 Feb-12 Jan-13
Change % Change %
JKM ($/MMBtu) 17.35 15.94 15.63 8.85 10.99
Qinhuangdao coal ($/MMBtu) 4.18 5.17 4.23 -19.04 -1.03
180 CST fuel oil ($/MMBtu) 16.06 17.85 15.94 -10.02 0.76
For more information on natural gas or the methodology used by Platts in its
power assessments, visit the Platts website www.platts.com.
Platts' monthly reports on Asia LNG prices and market developments are
typically published shortly after the 15^th of each month.
*Figures in the table are monthly averages of daily values assessed by Platts
from December 17^th to January 15^th. Platts JKM rolls on the 16^th of each
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