Platts: Asia Spot LNG Prices for September Delivery Rose 3.5% Month-over-Month on Production Outages

Platts: Asia Spot LNG Prices for September Delivery Rose 3.5% Month-over-Month
                            on Production Outages

On a Year-over-Year basis, September Prices Were Up 18.4% Versus 2012

PR Newswire

SINGAPORE, Aug. 22, 2013

SINGAPORE, Aug. 22, 2013 /PRNewswire/ --Monthly average prices of liquefied
natural gas (LNG) for September delivery to Asia rose 3.5% from August to
$16.005 per million British thermal units (/MMBtu), as production outages
supported higher offers and bids, according to the latest monthly Platts
Japan/Korea Marker (JKM) for month-ahead delivery. The monthly average Platts
JKM for delivery in September was assessed over the period of July 16 to
August 15.

This marked the second consecutive month-over-month gain in the monthly
average JKM.

On a year-over-year basis, the average September JKM increased 18.4%.

At the beginning of the assessment period, the JKM prices were supported by
short supplies due to production limitations. Nigeria LNG lifted its force
majeure only on July 26, despite production resuming on July 13, and
operations at Australian Woodside Petroleum's Pluto LNG liquefaction plant
also resumed around mid-July.

"But both restarts did little to rein bullish sentiment on near-term prices,
given the time needed to ramp up production rates and reschedule affected
deliveries," said Sarah Cottle, editorial director of power at Platts, a
leading global energy, petrochemicals and metals information provider and a
premier source of benchmark price references. "However, the spot market became
more bearish as supply gradually outstripped demand towards the end of the
assessment period, with a series of sell tenders issued in the spot market
over the past few weeks."

Meanwhile, the September spot prices of thermal coal and fuel oil, which are
substitute fuels burned by Asian utilities, saw year-on-year gains in prices.
However, compared to the previous month, thermal coal prices dropped 1.9%,
while fuel oil rose 0.6%, respectively, according to the Platts' latest data
for September.

Platts Spot JKM and Substitute Fuel Prices (Monthly Averages)*
                                               Year-On-Year   Month-On-Month
                   Sep-13    Sep-12   Aug-13
                                               Change %       Change %
JKM ($/MMBtu)      16.005    13.518   15.464   18.4           3.5
Qinhuangdao coal   3.92      4.32     4.00     -9.2           -1.9
($/MMBtu)
180 CST fuel oil   15.77     16.43    15.67    -4.0           0.6
($/MMBtu)
Source: Platts



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



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.

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

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, carbon
emissions,coal,electricity,oil,natural gas,metals,nuclear
power,petrochemical,shippingandsugarmarkets. A division of McGraw Hill
Financial (NYSE: MHFI), Platts is headquartered in New York with approximately
900 employees in more than 15 offices worldwide. Additional information is
available athttp://www.platts.com.

About McGraw Hill Financial:McGraw Hill Financial (NYSE: MHFI) is a leading
financial intelligence company providing the global capital and commodity
markets with independent benchmarks, credit ratings, portfolio and enterprise
risk solutions, and analytics. The Company's iconic brands include:Standard &
Poor's Ratings Services, S&P Capital IQ, S&P Dow Jones Indices,
Platts,CRISIL,J.D. Power, andMcGraw Hill Construction. The Company has
approximately 17,000 employees in 27 countries. Additional information is
available atwww.mhfi.com.

SOURCE Platts

Website: http://www.platts.com
Contact: Kathleen Tanzy, 212-904-2860, Kathleen_tanzy@platts.com, or Elizabeth
Catalano, +44 207 176 6024.
 
Press spacebar to pause and continue. Press esc to stop.