Singapore LNG prices drop as lower demand and high volumes offset any oil price effects
Singapore LNG spot cargo prices dropped as excess volumes and lower seasonal demand led to the highest price quoted being under US$5.500 per million British thermal units for the first half of August for North Asia.
The Singapore average index for July dropped to US$5.084 per MMBtu from last week’s June average of US$5.306 per MMBtu.
Singapore’s latest LNG indices released on May 16 included a price of US$5.005 per MMBtu for the second half of June and US$5.052 per MMBtu for the first half of July.
The surplus in global LNG supplies continued to put downward pressure on prices in the Northern Hemisphere summer market as crude oil prices stayed solid on the week at around $71 per barrel.
Cargo prices for the second half of July were at US$5.116 and were highest for the first half of August at US$5.176.
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 fell to a July average of US$5.354 per MMBtu versus last week’s June average of US$5.555 per MMBtu.
North Asia cargoes for the second half of June were at US$5.245 per MMBtu, before rising for the first half of July to US$5.310 per MMBtu, then moving higher to US$5.380 for the second half of July.
The first half of August price for the North Asia market was US$5.475 per MMBtu, the highest on the board.
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$5.192 per MMBtu for July, much lower than last week’s June average of US$5.400 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 June at US$5.113 per MMBtu before edging higher to US$5.167 per MMBtu for the first half of July.
The price for the second half of July was at US$5.217 per MMBtu and the highest for the region was the first half of August price of US$5.320 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.
Singapore LNG prices drop again close to recent lows as excess volumes offset oil influence
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.
Singapore spot LNG prices move up from their three-year lows though stay under $5.00 level
Singapore LNG spot cargo indices began to move clear of three-year lows as prices recovered slightly for all destinations with North Asia at a premium for the second half of June at $4.860 per million British thermal units.
Singapore LNG prices remain at three-year lows and may test level under $4.00 per MMBtu
Singapore LNG spot cargo indices remained at three-year lows as prices shed between US$0.30 per million British thermal units and $US0.60 per MMBtu compared with a week ago for May and June cargoes for North Asia and elsewhere.
Singapore spot LNG prices drop to lowest in three years and are quoted under $4.75 level
Singapore LNG spot cargo indices dropped to their lowest level for about three years with the May price being at a high of US$4.793 per million British thermal units and only June cargoes for North Asia quoted above the US$5.000 level.
Singapore LNG prices drop under $6.00 while prompt North Asia cargoes at around US$6.25
Singapore LNG cargo indices were all below $6.00 per million British thermal units through May, while only North Asia shipments fetched around $6.25 per MMBtu for the second half of March as North Sea Brent crude prices of around $65 per barrel had a stabilising effect on most prompt delivery values.
Singapore LNG prices steady amid prompt North Asia cargoes at US$6.40 and quotes for May
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.
Trading on European continental natural gas and Asian LNG contracts rise to record
Intercontinental Exchange, the operator of global platforms and clearing houses for energy and commodities, reported record trading in the continental European natural gas Dutch Title Transfer Facility (TTF) contract and in the Japan-Korea Marker contract used for North Asian LNG cargo pricing.
ICE said in a statement that Dutch TTF futures hit an open interest (OI) record of 1.04 million lots in January 2019.
“TTF futures and options combined achieved monthly volume of 952.4 terawatt hours (TWh) in January,” said ICE.
The Dutch TTF is a virtual trading point for natural gas in the Netherlands, set up by natural gas network company Gasunie in 2003.
Since then the Dutch TTF has become a leading continental European benchmark and trading hub for spot, forward and futures gas trades. It has grown in importance as the UK prepares to leave the European Union.
“Average daily volume (ADV) and OI in TTF futures and options combined are up 103 percent and 64 percent respectively in January 2019, versus January 2018,” said the trading platform operator.
ICE said the JKM LNG futures, part of price discovery by Platts, a subsidiary of US company S&P Global Inc., formerly McGraw Hill Financial, traded a record 25,605 lots in January, an increase of 22 percent compared with the previous record of 20,916 lots set in November 2018.
The JKM LNG hit an OI record on February 4, 2019, of 26,928 lots. Average daily volume and OI in JKM LNG are up 176 percent and 123 percent, respectively, in January 2019, versus January 2018.
ICE added that as previously announced it will launch its JKM LNG Average Price Options on March 4, 2019, subject to the satisfactory conclusion of applicable regulatory processes.
“Europe’s vast energy infrastructure and geographical location allow it to provide a unique role as a balancing market for LNG,” explained ICE.
“The TTF and the UK National Balancing Point are the two most liquid European natural gas benchmarks and, with its continued record trading activity, TTF is transforming into a global natural gas benchmark,” said Gordon Bennett, Managing Director, Utility Markets at Intercontinental Exchange.
“JKM LNG is one of the fastest growing natural gas benchmarks and has established itself as the most liquid Asian natural gas benchmark,” added Bennett.
