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
180 CST fuel oil   15.77     16.43    15.67    -4.0           0.6
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

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