Singapore LNG spot cargo indices began moving down to levels testing the $5.000 per million British thermal units mark as July cargoes for North Asia were the only bright spot at above US$5.500 per MMBtu.
The Singapore average index for June dropped to US$5.035 per MMBtu from last week’s June average of US$5.203 per MMBtu.
Singapore’s latest LNG indices released on April 25 included a price of US$4.847 per MMBtu for the second half of May and slightly higher at US$4.984 per MMBtu for the first half of June.
Prices were quoted as a surplus in global LNG supplies permeated the Northern Hemisphere summer market as other energy trading products benefited from crude oil prices this week of around $74 per barrel.
Cargo prices for the second half of June were at US$5.086 and were higher for the first half of July at US$5.248.
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 also fell to a June average of US$5.305 per MMBtu versus last week’s June average of US$5.554 per MMBtu.
North Asia cargoes for the second half of May were also lower week-on-week at US$5.107 per MMBtu, before rising for the first half of June to US$5.254 per MMBtu, then moving even higher to US$5.355 for the second half of June.
The first half of July quote for North Asia was the highest on the board at US$5.519 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$5.177 per MMBtu for June, an increase from last week’s June average of US$5.327 per MMBtu.
The DKI index, based on a cargo of between 138,000 cubic metres capacity and 170,000 cubic metres, is seen in the second half of May at US$4.978 per MMBtu before increasing to US$5.135 per MMBtu for the first half of June.
The price for the second half of June jumped to US$5.220 per MMBtu and increased further for the first half of July to US$5.388 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.
