Singapore LNG cargo indices were at a high of $6.40 per million British thermal units for North Asia while May spot cargoes were quoted at around $6.00 per MMBtu as the oil price remained solid above $65 per barrel and underpinned hydrocarbon markets.
The Singapore average index for April was at US$5.983 per MMBtu, falling from last week’s average of US$6.136 per MMBtu.
Singapore’s latest LNG indices released on February 21 included a price of US$6.060 per MMBtu for the second half of March and was lower at US$5.985 per MMBtu for the first half of April.
Cargo prices for the second half of April were at US$5.980 and were slightly higher for the first half of May at US$6.059.
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 dropped to an April average of US$6.317 per MMBtu versus US$6.506 last week.
North Asia cargoes for the prompt second half of March were the highest available in the market at US$6.400 per MMBtu, before declining for the first half of April to US$6.325 per MMBtu, then down further to US$6.318 for the second half of April.
The first half of May quote for North Asia showed some recovery at US$6.350 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$6.068 per MMBtu for April, down from last week’s US$6.205 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 March of US$6.130 per MMBtu before dropping to US$6.060 per MMBtu for the first half of April and edging higher to US$6.075 for the second half of April.
The first half of May quote for Dubai-Kuwait-India was at a steady US$6.113 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.
