Singapore LNG cargo indices dropped to below US$7.00 per million British thermal units as seasonal declines were evident and pushed North Asia February shipments under the $7.50 per MMBtu mark.
The Singapore average index for March was at US$6.900 per MMBtu for spot cargoes, well below last week’s average of US$7.702 per MMBtu.
Singapore’s latest LNG indices released on January 31 included a price of US$7.184 per MMBtu for the second half of February and was lower at US$6.830 per MMBtu for the second half of March.
Cargo prices for April were in the window and first-half prices were at US$6.717, still supported by the North Sea crude oil staying around the $60 per barrel mark.
The Sling is an index series for LNG developed by the Singapore Exchange (SGX) and its subsidiary Energy Market Company (EMC).
It is a spot index for cargoes “on the waters in the vicinity of Singapore which could go into any port” and based on cargo sizes of 135,000 cubic metres capacity to 175,000 cubic metres capacity.
The North Asia price was quoted at a March average of US$7.175 per MMBtu, US$0.91 lower than last week’s March average of US$8.086 per MMBtu.
North Asia cargoes for the second half of February were the highest on the board at US$7.470 per MMBtu. Prices then fell for the first half of March to US$7.240 per MMBtu, then down further to US$7.111 for the second half of March.
The North Asia quotation for the first half of April was US$7.010 per MMBtu.
The North Asia prices are for delivery ex-ship (DES) to all ports in Japan, Korea, Taiwan and China.
The Dubai-Kuwait-India Sling index is assessed in collaboration with London-based, inter-dealer global brokerage Tullett Prebon for regional cargoes shipped to India and the Middle East and averaged US$6.948 per MMBtu for March, well below the March average last week of US$7.722 per MMBtu.
The DKI index, based on a cargo of between 138,000 cubic metres capacity and 170,000 cubic metres, is seen at a high in the second half of February of US$7.170 per MMBtu, before dropping to US$7.013 per MMBtu for the first half of March and lower still to US$6.883 for the second half of March.
The first half of April price for Dubai-Kuwait-India was quoted in Singapore at US$6.783 per MMBtu.
The SGX LNG Index Group (Sling) is an initiative by SGX and EMC for spot LNG price discovery. It is a benchmark based on assessments of LNG cargo value by market participants.
They provide assessments based on the value of an LNG cargo at a specific location for delivery.
The Sling is based on participants submitting assessments to determine an index value.
“The participant pool consists of a broad group of market players to ensure that any Sling Assessment is as representative of actual market conditions as possible,” says the SGX, while pointing out that the participant is kept confidential at all times.
The SGX-EMC LNG prices include both lean and rich cargoes.
