Aug. 28 (Bloomberg) -- Liquefied natural gas prices for Northeast Asia dropped this week due to ample supply and reduced demand for spot cargoes, according to Energy Intelligence Group.
The cost of LNG for delivery over the next four to eight weeks was $15.25 per million British thermal units in the period ended Aug. 26, down from $15.40 the previous week, the New York-based research company said on the website of its World Gas Intelligence publication. Southwest Europe gas declined to $11.65 from $11.90.
LNG prices are forecast to fall this week, according to four of five traders surveyed by Bloomberg News through Aug. 23. Asian buyers typically purchase fewer cargoes in September and October as power consumption drops with cooler temperatures.
Buyers in North Asia have large inventories of gas, which has reduced demand for spot shipments. Utilities in Japan, the world’s largest buyer of LNG, need as much as two cargoes in October, WGI said.
There may be spot LNG shipments available from Russia, Indonesia, Brunei, Malaysia, the Middle East and North Africa to meet demand for October, according to the research company.
Nigeria LNG Ltd., Africa’s biggest exporter of the fuel, closed a tender Aug. 17 to sell two cargoes loading in September. One shipment was awarded to Malaysia’s state-owned oil and gas producer, Petroliam Nasional Bhd., which sent the tanker Seri Bijaksana to load the supercooled gas, a company official said Aug. 26. Deliveries from Nigeria LNG resumed last month after the company lifted a force majeure.
Trinling Ltd. and Point Fortin LNG Exports Ltd., gas companies from Trinidad & Tobago, are separately offering to sell one cargo each for September loading with their tenders closing Aug. 23 and Aug. 26, respectively, Bloomberg reported earlier.
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