Platts: Prices of Asia LNG for April Delivery Fell 7.9% on Weak Asian Demand

 Platts: Prices of Asia LNG for April Delivery Fell 7.9% on Weak Asian Demand

On an annual basis, LNG prices for April Delivery Rose 16.2% from 2012

PR Newswire

SINGAPORE, March 22, 2013

SINGAPORE, March 22, 2013 /PRNewswire/ -- Prices of liquefied natural gas
(LNG) for April delivery to Asia fell 7.9% from March to $17.636 per million
British thermal units (MMBtu), the first drop in the monthly average since
October 2012, according to the latest monthly Platts Japan/Korea Marker (JKM)
for month-ahead delivery. Price declines were attributed to weak demand as
traditional buyers relied on previously-negotiated term contract supplies to
meet spring needs, which are seasonally low.

This followed an all-time high of $19.85/MMBtu in March and the month's
average of $19.139/MMBtu, which was buoyed by South America's competing strong
demand. The monthly JKM assessments are prices of LNG for month-ahead delivery
to Asia and are an average of the daily JKM price assessments reported by
Platts. The monthly average Platts JKM for delivery in April was assessed
between February 18 and March 15.

"With buyers in such key markets as Japan and South Korea amply covered by
term contract supplies for April, those who have some space for additional
cargoes have the flexibility to wait on the chance that prices will come
down," said Sarah Cottle, Platts editorial power director, Asia and Europe.
"Furthermore, it appears LNG sellers have plenty of ready supply available for
April delivery, despite ongoing power outages at both Nigeria LNG and Norway's
Hammerfest LNG plants."

On a year-on-year basis, the April Platts JKM was up 16.2% from last April's
$14.775/MMBtu, marking the third consecutive month of year-over-year gains.

Meanwhile, the month-ahead prices of thermal coal and fuel oil, which are
substitute fuels burned by Asian utilities, dropped 1.6% and 0.8%,
respectively, according to Platts' latest monthly data.

Platts Spot JKM and Substitute Fuel Prices (Monthly Averages)*
                           Apr-13 Apr-12 Mar-13 Year-On-Year Month-On-Month
                                                Change %     Change %
JKM ($/MMBtu)              17.636 15.180 19.139 16.2         -7.9
Qinhuangdao coal ($/MMBtu) 4.11   5.09   4.17   -19.4        -1.6
180 CST fuel oil ($/MMBtu) 16.42  19.26  16.55  -14.7        -0.8

Source: Platts

*Referred to as month-ahead, the figures in the table are monthly averages of
daily values assessed by Platts from February 18^th to March 15^th. Platts JKM
rolls on the 16^th of each calendar month.

For more information on natural gas or the methodology used by Platts in its
power assessments, visit the Platts website

Platts' monthly reports on Asia LNG prices and market developments are
typically published shortly after the 15^th of each month.

About Platts: Founded in 1909,Plattsis a leading global provider of energy,
petrochemicals, metals and agriculture information and a premier source of
benchmark prices for the physical and futures markets. Platts' news, pricing,
analytics, commentary andconferenceshelp customers make better-informed
trading and business decisions and help the markets operate with greater
transparency and efficiency. Customers in more than 150 countries benefit
from Platts' coverage of thebiofuels, coal,electricity,oil,natural
gas,metals,nuclear power,petrochemical, shippingand sugar markets. A
division of The McGraw-Hill Companies (NYSE: MHP), Platts is headquartered in
New York with approximately 900 employees in more than 15 offices worldwide.
Additional information is available at

About The McGraw-Hill Companies: The McGraw-Hill Companies (NYSE: MHP), a
financial intelligence and education company, signed an agreement to sell its
McGraw-Hill Education business to investment funds affiliated with Apollo
Global Management, LLC in November 2012. Following the sale closing, expected
in early 2013, the Company will be renamed McGraw Hill Financial (subject to
shareholder approval) and will be a powerhouse in benchmarks, content and
analytics for the global capital and commodity markets. The Company's leading
brands will include: Standard & Poor's, S&P Capital IQ, S&P Dow Jones Indices,
Platts, Crisil, J.D. Power and Associates, McGraw-Hill Construction and
Aviation Week. The Company will have approximately 17,000 employees in more
than 30 countries. Additional information is available at


Contact: Kathleen Tanzy, +1-212-904-2860,, or
Elizabeth Catalano, +44-207-176-6024,
Press spacebar to pause and continue. Press esc to stop.